There is no application or form, you just claim it for yourself and then if you get audited- you have to show the proof of the hrs you accumulated.

If you are seeking out asset accumulation and equity appreciation over the long term then there are certainly fortunes to be made.

And long term, if the crawlspace is getting a lot of water, it's probably worth putting a sump pump in there to make sure water doesn't accumulate down there and the mildew (or mold) from returning. 

Question is there to buy or sell: My long terms goals are to accumulate 5 -7 SFRs in the southern Orange County, CA area so that i can retire from my portfolio of SFRs.

The more expensive the HOME (aka $469,000 home), the greater the depreciation losses that you can accumulate.

Option B I would consider a new skill set and focused on capital accumulation rather than long-term wealth building.

Most long term renters that are past college years, are likely to have accumulated their own furniture and belongings and would prefer to bring those with them into the rental with them so it feels more like their own home.

Build up some savings using the simple approach of a brokerage SEP, then upgrade to a Self-Directed Solo 401(k) once you have some savings accumulated. 

Even if the why has changed and you decided you will no longer pursue live in flips, you've established that while accumulating a wealth of knowledge on the process (whether you wanted to learn it or not).  

I currently live in a small town and there is not a lot of opportunities here but luckily I'm moving to Austin or San Antonio TX or between both here in a few months so I see this as a great opportunity to start wholesaling and accumulate profit to start flipping homes and turning them into rental properties.