I work a 9-5 at a dead end job in logistics to put my wife through school while she is working on her masters in the medical field.

I know she can use the gift tax exemption so no worries on that end.

The business pays for cell phones, medical bills, shirts that I have embroidered. 

I'm not familiar with CA rent caps but I doubt a change in ownership would result in an exemption as it seems like it'd be a loophole owners could exploit to circumvent the law (i.e. sell the property to a spouse and then jack up rent). 

I recommend to occupy it as your primary residence for 2 years during the 5 year period prior to selling to qualify for tax exempt profits.

We got the line set based off these inflated prices, and we're putting idle funds to work until the market turns, at which point we'll write a check out of our line to finance the next property.I actually liked the loan so much that I left my job in Medical sales to join a broker that specializes in them.

@Lindsey CeaneFor the most part, government today views that housing, or access to it without the ability or desire to pay is an entitlement the same as medical services and drugs to mask symptoms.

A $500k exemption means nothing lol?

If the property is financed in a self-directed IRA - there would be Unrelated Business Income Tax on the profit from leveraged portion of the property (truly self-directed Solo 401k plan would be exempt from taxes on leveraged real estate).There is no possible way for you to transfer existing property you own personally into your IRA!

You get up to 250k in capital gain exemptions if you sell your primary and you lived there for two of the last five years, 500k if you are married.