Every time I asked them why this is so expensive they keep playing the same records, we trust our contractor, if you want better deal you might want to find out someone yourself who  would do it less expensive.

It should be handled by your tax software or, better yet, by an accountant.You also have an option of paying the entire capital gain upfront, which is usually not to your advantage, however in some situations it could be.

I really need to get a better handle on the financials.

Decent area, but not one of the better school districts or better parts of town.   

Will also allow you to manage intro conversations better with other agents when you are looking for deals as an investor.

Moreover, waiting for rates to lower further might not necessarily translate into better deals.

I'm in the Tahoe market and the cost of entry is high and yet 30 minutes away in Reno, NV the cost is much lower and the returns are better. 

Then, you're likely better to stay as close to home as possible until you get your feet wet. 

are there areas where condo's are better then houses? 

Would reaching out to a real estate lawyer or architect be better to see if it's possible to convert to a legal apt?