I think you could split after sale for a non-taxable event, the total basis transferred in would be split across the two "new" properties.Calling @Dave Foster to give his insights here, lots going on in this one.

I even named them the #3 non-seasonal market in the US today in our BiggerStays weekly newsletter here based on numerous metrics.

I know RE Professionals get better benefits than non.

The likely market rent in this area is as low as $995 and probably no higher than $1195 and a lot of the rent will depend on condition of the property.Pull up public records on the home, and you will see it initially sold in 98 for roughly 50k. 

We all know you won't do that because everything you say is hot air and not in line with what is publicly available as proof.Good luck.

Start a public records inquiry at the local/county level.

Too many new investors blindly copy due diligence checklists from the internet, assign equal importance to each item and blow up deals over nothing.

Even if you create a non-CA LLC, if you are managing the business from California, you will likely be deemed to be "doing business" in California and therefore likely subject to CA taxes.

On our syndicated properties we have 2 bank/lenders that issue non recourse loans to us as long as we have 50% equity in the deal. 

I suspect you'll have better luck with lenders or brokers that are 'non-bank', but if you do insist on working with a bank, I would avoid big banks.