It’s looking like this will cash flow neg just with est mortgage payments plus insurance and taxes of $1100ish (after renovation), property management of $120. 

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. 

I want to use her equity as a gift for the down payment to avoid capital gain taxes.

Then right before closing, they ran the county records and said they can’t do a HELOC on a home I don’t personally own, and I would need to do a quit claim deed and put it back in my name to get the loan approved and then can do another quit claim deed to put it back under the LLC that it’s currently operating under. 

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

The short answer is take them to small claims court. 

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.  

Where if we use our own personal funds (not funds acquired from our spouses or from our marriages) our business would be strictly ours and our spouses have no claim to it should one of us ever divorce from our spouse. 2) Invest with my husband using the equity from our home but I want to have a business structure that is separate from the marriage where we are both partners and we are paid for our individual contributions to the business.What type of business partnership could I have with my husband that can be setup in that way?

As a result, a mixture of high taxes and decreasing job prospects are making rental properties less profitable and more risky, never a great combination. 

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