Why not just keep the properties paid for ( you got prop 13 and a step up in depreciation bases ) or do a 1031 exchange before Trump tries to squash that? 

Hope you can squash it and move on! 

I dont like to squash dreams but you need to know what battles to fight and know your limitations. hopefully you can eventually build and develop 100 units but you need to crawl before you can walk.

City / County could squash your plans, or the revenue you think you'll make isn't all it's cracked up to be.I think you'd be better off speculating on a property that already has a residence on it (better appreciation, you can rent it, etc.) or investing in a business. 

And if that's not enough to squash the deal California is a community property state so there may or may not be elections for how that property is treated.And your description of simply handing cash to her husband (meaning her) and being added to the note is a big no from the get go since there is no acquisition of real estate only an addition of party to a note.No

Should I just squash this idea altogether since I need to find a place that I can live to fulfill that requirement?

By the way those properties minimum are 25% down and likely to go to 35 to 40% down if not BBB- or better investment grade tenant.Not trying to squash your dreams but I look at between 500 to 1,000 om's and flyers a week for my clients nationally for NNN retail STNL and MTNL. 

For a brief moment you will be treated as the devil squashing the dream of these homeowners. 

We cannot squash this net profit with more deductions.

As an Architect, I have seen firsthand zoning and environmental laws used by project opponents to discriminate economically, religiously and racially or to try to squash business competition or eliminate labor competition more times than I can count.3.