as for legal proceedings.. well not worth the hassle for a measly 2k.. unless you want to slog through small claims court. and see what the judge says.

Are you completely demolishing structures in the "abatement" of methamphetamine contamination? 

Or is here something I'm completely missing?

It was completely rehabbed with an additional  $150k.  

If you think you will go FHA, Conventional, 203k, etc. and then Quit Claim the property, to a LLC, or a Land Trust you run the risk of the lender discovering a Title Transfer occurred and activating the "Acceleration Clause" or "Due on Sale Clause" that requires the loan to be paid in full, within 'x' number of days.

However, elsewhere on the internet, I had read that you could not rent your property completely, even if you lived more than 12 months.

You and your wife should both already have substantial incomes, yet your net worth is completely upside down because you're not in control of your spending.You and your wife are not willing to house hack.  

Many of our clients are real estate investors and I see two different strategies when it comes to claiming CCA.

Now I am working on a house that is a complete rehab.

@Benjamin Molina Sacramento is getting pretty hot right now especially with the arena nearing completion, and the close vicinity to the Bay.