We do quite a lot of small-mid size multifamily in Reno which has somewhat similar dynamics to Sac, but with some key differences in terms of property taxes, landlord laws, etc. 

However, the mortgage and taxes are too high in this home to go that route.

Sell this one and keep the cash on hand (after taxes (Ouch!))

Weeks went by.The Vendee lender's agent seemed pretty much like dealing with any mortgage lender - asking for all our financial paperwork, taxes, etc.  

I find the individual accounts help keep income and expenses separated by property which is useful for tax time in my opinion.

Its entirely possible that if he sells the house , and keeps the proceeds , she could be hit with a 1099 and since her debt was forgiven , and be liable for income taxes on that amount   But you wrote "If the man wanted to he could sell the house and keep the profit", nothing about your advice is based on having reviewed the divorce. 

Are you investing strictly for tax purposes?

I am going to get hit with capital gains and state taxes(Idaho 5.8%)..closing on cabin on the 18th of Nov.

*I am not a CPA, tax professional or a lawyer*I cannot give legal advice, so all of my advice is illegal advice.As far as I know, section 469 of the tax code is what allows for the "STR loophole". 

I can get the info from the county tax records but still need to take another step?