And an argument could be made that since she doesn't own more than 50% of the property that the entire ownership structure of the property equates to a non-related party for you (much like an LLC). 

If substantial renovations or capital improvements are made in later years, those improvements may qualify for new bonus depreciation.3.

I am happy that I made the decision.

Your decades of experience have made you jaded. 

The interest rate increase has made it much more challenging to find good RE investment opportunities in San Diego (I have not purchased in 3 years in San Diego).Good luck

And.....”preREO”...just another goofy a$$ made up marketing term. 

We made the decision to rent and prepare our house for long-term rental.

Then it sounds like you have your mind made up then right?

Some exceptions can be made but the only real way around it would be to get a solid cosigner for the loan with a good W2.

On the better advice, you demonstrate that you are trying something, the progress you've made, and where you got stuck.