I would also have cash reserves if you do this, don't rely solely on a HELOC on the rehab.

And to me, if you're paying more than 75% LTV (all in - purchase plus rehab) than you're not doing it the right way.  

3)  do you recommend a tax attorney that can help us do this process?

Three questions: 1) do California Realtors have a seller financing addendum that they can use? 

It might be too high depending on the house.

Do I have to complete the separation of units by January 1st to write off half of my closing costs/other expenses?

(New build with Lennar)Do you think it is a good place to buy?

We use PriceLabs but set it at a consistent rental rate and same on FF.

What to do or where to go for new policy TBD

I will be moving into the 5 bed 3 bath because the tenant has been there half as long as the upstairs tenant (therefore that is the unit I am legally directed to move into vs the more tenured upstairs tenant).I do not need the space of a 5 bed 3 bath apartment so am planning on renovating the entire space and turning it into x2 2 bed 2 bath apartments while I am living there.