Additionally, consider operational costs like cleaning, staffing, and marketing, as they can quickly add up.For management, outsourcing to a professional property manager or leveraging tech platforms for bookings and operations could streamline things, especially if you plan to scale.

It never hurts to have an additional set of eyes to look after your property.

Are there additional steps you take when screening applicants, or do you take fewer steps?

The cons as i see it include loosing the 2 of 5 year cap gain exception, typically not an ideal rental because the emphasis at purchase was buying a good home for your family and not a rental with optimal return (my ex-home consistently has the lowest cash flow for equity in my RE portfolio), not disconnected enough from the property causes addition angst on damage and may result in over improvement.  

Here are a few ideas to explore that might help you get closer to homeownership in San Diego without selling:Cash-Out Refinance:Refinancing one or both of your El Centro properties could free up additional cash for a down payment without selling.

Additionally, there’s always a risk that any pet-related damages could be hidden under furniture or otherwise concealed, potentially leaving us to cover the costs if the security deposit is fully depleted by other expenses (e.g., damages or unpaid rent).

Additionally I would add a benefit for you is that you're in great area to be able to invest locally and can invest in your own back yard as they say.

On the positive side, it seems like you have a good potential BRRRR that you can use to purchase additional properties.

Additionally there is always a healthy nouveau rich following that attempts to mirror their predecessors achievements.

Are you saying the current property being exchanged has a debt of $200k and you need an additional $200k to purchase the new property?