I am trying to equip some of my homes but it costs lots of money and I dont seem to be getting that much gold from dungeon loot. Are there particular dungeons, locations or other places that are good ways to build up my gold reserves? (not doing thief stuff at this point so not interested in answers that are in-game-illegal)

rock milk cave

In general, you get the best return on light armor, so the above is a good easy source. If you've done the right quest, vampire dust gets to be worth collecting, too. Other items, like jewelry, are common on leveled lists and could be anywhere.
Weapons are generally poor value for weight, unless enchanted, but the better ones are past the merchants' gold caps. I'd only pick up weapons to use.

What's the name of that tavern on the road with those guys with leveled armor?

Roxey Inn?

Pretty much everybody has leveled armor.

Actually, the best general loot, on a value-to-weight ratio, would be potions, ingredients, and arrows. They're worth at least one gold each, but you can carry lots of them. If you don't mind leveling up Alchemy, make potions and sell them (a wise strategy only if Alchemy is a minor skill.) Otherwise, just go after bandit archers and gather ingredients for sale.

Crumbling Mine, Dzonot, Belletor’s Folly, Rockmilk Cave, just for starts. Then work your way up to Marauders and Necromancers. At lower levels, you will probably have to make a lot of trips to haul all the loot back to town. Use Feather potions and spells to help out. Also raise your Mercantile level so you get better value for the loot.