You can't do anything "cheaper" than what you're doing now, so the only question is how much you want to pay for your freedom. 

@Alex Ng I think Birmingham is a great place to invest because of the cheaper prices and low taxes.

Is maintenance on a “solid” house cheaper than expensive HOA fees?

I wanted to get the opinion of others on what the best strategy is to deploy capital back into the properties to in order to reduce our taxable income while also continuing to build wealth.

(Remember, a loan is not a taxable event.)Given that mortgage rates are also close to 7% this won't boost your cash on cash returns much, but a higher percentage of your free cashflow will be tax sheltered, potentially all of it. 

There are many ways to avoid taxes, so nobody can give you a complete answer without knowing your entire tax situation.If your only taxable item was selling this condo, you would owe long-term capital gains on the $150,000 plus ordinary income on depreciation recapture.

My next best option would be a 2 bdr condo (for cheaper price + condo fee), which are also a little older, but in better locations of Fairfax county.   

In addition to appreciation potential, there are a bunch of tax benefits to consider as well... my favorite being that a tax loss can be carried forward to offset future taxable income.

(Call and say you want to attend the FFP event; its cheaper than signing up online. 

I am well aware, that they are of much cheaper quality than other options.