Is there any way to divide a lot under SB9 without having to live on the property for 3 years as required by the current rules (at least in Riverside, CA)?

Unfortunately it’s an SEC requirement to be accredited for an investment filed under Rule 506(c) — which this investment is.

I was lucky enough to find a property just a few blocks from my TK purchase that was in excellent condition, fully tenanted with two units, passed the inspection with flying colors and is grossing close to the 2% rule.

CA rules do not require a closet but some jurisdictiins in CA require a closet.  

Pete Beach has varying STR rules in different areas, and each condo HOA sets it's own stipulation on 3, 7, 14, 30+ day minimums.

Compare that to Vegas, where rules can be restrictive and condo-hotels often come with sky-high fees or limits on how you can use your property.

Asking in the correct forum will get a better response.Read the RULES!

Not calculating maintenance expense could end up being a nightmare.I always estimate (using either the 50%, 1% or square footage rule) the annual maintenance / first year of maintenance fees for a ALL rental property.

I mean has anyone proven that something was not disclosed or done against SEC rules ? 

Rules for contractors NEVER use your money to fund a customers project ( unless you hold first lien position and charge interest )If the money stops , the work stops .Put everything in writing .