As @Braden Smith said there is legislation everywhere, and lawsuits, over non-compliant spam texting.

Appreciation is a bit of a gamble, can swing wildly up or down, and doesn't pay off until you sell the property.

If you use $40k to take a trip to Vegas and gamble your money away, then I would go with $300/mo. 

More than likely a potential for more profit, but must put in landscaping and fencing, maybe $40k.If the goal is to make as much money as possible in order to have a big down payment on the future CA build, should we stay where we're at given the capital gains hit, or take the gamble of hoping the other house gets us a bigger profit margin?

It is pure gambling at that point at the cost of your money. 

Should I take this gamble?

You have some good advice here and some spam, but most are missing the most important thing for house hackers right now if they are using an FHA loan - it's vacancy.

Many people purchase the wrong properties and then can't afford repairs, vacancies and they don't have a clue regarding how to manage properties and don't have a clue regarding what to do when the tenant from hell destroys the property and does not pay rent for 6 to 9 months while you are paying the mortgage and an attorney.If you a gambling woman with huge suitcases full of money then jump right in and take your chances not with real estate, but take your chances trying to find an honest and competent person who will guide you in the right direction like you are their mother.

It could appreciate but I consider that gambling.

@Jay C.I would steer clear of crypto and stock market because it’s a big gamble.