One of the long term consequences of widespread aggressive rent control has been to concentrate large populations of low income renters into high cost areas. 

LTR may be more consistent income, there's pros and cons to both.  

But it is a conversion from one rental to primaryOther alternatives to achieve the basis transfer would be to sell both and buy a new one but that would trigger income taxes and sales expenses that may be more than the tax savings from basis carryover. 

I don't have a W2 and all I have is the first duplex income and some photography income from my photo business.

Any advice on landlord friendly state with good rental income?

Great for low-income rentals if bought super cheap.Years ago I was repairing sewer lines for the county and a sheriff's deputy pulled up and told me and my crew to be gone before the sun went down, because they probably wouldn't come back.

You need to talk to CPA first regarding to the income tax, gifted tax or capital gain issues.  

There is no statutory requirement for rental income.3.

I think I am after the golden 10k/mo net income from real estate.  

In central Alabama the following areas are good.Hoover, Pelham, Calera, Alabaster, Helena, McCalla, Gardendale , Trussville just to name a few.More affordable low income areas will include Centerpoint, Pinson, Hueytown, Pleasant Grove, Ensley.