if there is appreciation, but you wouldn’t sell your current home tax free and buy a neighboring home to rent out, (There by raising your cost basis for additional depreciation and lower capital gains tax.) then it probably doesn’t make a good rental property. . 

If you do the math, since your borrower is paying interest on interest, it raises your effective interest rate by about a point.

I used the funds to acquire real estate that appreciated signficantly.

Unless you want to continue having negative cashflow, you pretty much have to raise rents.

Now they want to put the properties into RE Gain Fund, LLC UpREIT (which appears to have been established in 2023). 

This leads to state funded insurance which will be very costly because only those at highest risk will participate in it and if the losses continue, they eventually will need to get the money from someone (rest of people in california?) 

For example, I hate to sell anything, but I am selling two properties to raise funds for a new primary that meets my goals.Study the market and really lock in what it will rent for.

I have absolutely no funds myself.

Some private lenders will step in and fund.

@David R Pustelnik recommend you first focus on raising the rent for the first time in 10 years.By the way, how much have your property taxes and home insurance gone up since this tenant moved in?