Update...problem still persists. However, I found a pattern that when I leave the house, the Rachio goes offline. Maybe it is a coincidence, but it has happened 3 times already. It also seems to do it overnight for the last two days I have had the unit setup. I talked to support for Rachio and NetGear (my router) and still no success. I was able to reserve the IP address on my router and yet it still goes offline. Rachio support could not figure out the problem as everything on their side seems to be normal. If it goes offline again by tomorrow, I will call again. We may need to swap out the unit.
Also, a strange thing happened today where it went offline, then suddenly went back online while I was out. I tried to manually run my sprinklers and the app showed "watering" but nothing was happening with my sprinklers. I checked the unit, and it was stuck as usual 1st light solid and the second light blinking. I restarted the router again and the unit successfully connected. I am hoping it is a software glitch that can be solved remotely, but I am beginning to think it is a faulty unit. Not what I expected after reading the great reviews of Rachio. BTW: Support for Rachio has been excellent. They have been trying their hardest to solve the issue.