You can get a little can of POR15 to paint the bare surfaces if you're into aesthetics.

As you can see, I am not.

 

I have all the tools you stated in addition to a jack, jack stands, and a bunch of other miscellaneous stuff. What I don't have is any compressed air tools or anything to heat up bolts.
To make the holes, I can use an angle grinder right? Do I have to worry about the sparks being thrown?

 

If you're concerned about spread of flame anywhere, make a barrier out of sheet metal, aluminum foil, damp towel-- plenty of options. Think and plan.

 

Heat is required for this job. If you're not aware, you will break the bolt before your break-loose permanent "loc-tite". Lovely stuff... Heat is the only way to break it down, and then it comes apart easy as pie...

The "blue wrench", as heat is affectionately referred to, is one of the most useful tools when working on vehicles, especially older ones. A MAPP gas torch works well enough for most tasks. If you can apply heat directly to the nut, propane will work. if you have to pass heat through the head of the bolt, such as in this case, it doesn't have enough BTUs to really do the job effectively.

Generally, you'd heat the bolt through its head and right about the time that the rubber bushings start smoking, the loc-tite has broken down. It's certainly a good idea to pull up the carpet above where you're working, but other than that, the risk of fire is pretty low. One thing you can do is to fill up the tank with fuel; liquid is much less explosive than vapor. Other than not directing the sparks directly into an open fuel filler, there's not a whole lot else you need to do. It's a sealed system and you'll smell gas vapors well before an explosive mixture level is reached.

 

You could always use a hot air gun but it would have to be applied to the "bulge" as, like propane, it wouldn't work on the bolt head - & probably for a much longer time.

No need to cut any holes (unless/until that welded nut inside the frame breaks loose) there are conveniently places holes in the underside of the frame to aim your penetrant of choice in the general direction of the nut/ bolt tip: have to be more than generous (alright, wasteful) though. 1st time I drilled a hole in the "bulge" to direct the aerosol straw at the nut, but no point, except, possibly, to save a little on penetrant.

To tackle the front bolts my trick is to radius the pinch weld to get a socket & 10" extension straight on the head; support extension on a jackstand, you can then turn a 2 - 3 ' breaker bar thru about 180*, but it will almost certainly require more force than you'll be comfortable with. After that, apply more penetrant, wind back in - should then come out with a decent size ratchet.