I am thinking about exchanging into another CA property for now (and avoiding the cap gain taxes of upcoming sale), and then a year or two later I'd sell that property and then deploy that money out of state. 

Unless I think I can time the market, I am going to keep deploying my cash in something better than that.I am also bearish on treasuries, which I think will generally see yields rise (and values decline) on anything with longer maturities (yield curve normalization and long term downward pressure on the ratings/"safety" of US gov't debt).

Most investors who are not in the "business" of real estate generate their wealth from a job or business, like you post, and then deploy that wealth into real estate. 

By carefully balancing the collateral and ensuring rigorous underwriting standards, it is possible to mitigate potential downsides while capturing the upside potential, providing a compelling investment proposition in a competitive market.Uses of Mezzanine Debt CapitalMezzanine debt can be deployed effectively in several ways, including:- Liquidity Provision: Providing liquidity to set aside interest reserves for first lien lenders and tax and insurance escrows required by the first lender.- Property Improvements: Funding additional property improvements such as renovations, HVAC work etc.- Operating Shortfall Coverage: Addressing operational shortfalls during challenging periods.Objectives of Mezzanine DebtThe primary objectives when using mezzanine debt include:- Project Stabilization: Completing renovations, construction, or improvements and then stabilizing the property with 90%+ occupancy.- Interest Rate Management: Buying time until interest rates normalize or decline.

If you have a high return on equity, then you are more likely to be making high revenue relative to your existing payment, which means you would be more able to cover the higher payment of a cash out refi and would then have cash to deploy. 

Yes, rates are high, but dollar for dollar there are many positive and cash flowing investments to be found, or...made.A tactic I've been utilizing for buyer(s) recently is the deployment of seller concessions in the form of seller(s) contributions towards buyer(s) closings costs, pre-paids or interest rate buy downs. 

Most west coast IPPs deploy solar with energy storage systems (ESS) to time-shift out of the low to negative margin day rates.

I wouldn't pay off the house entirely, as you can deploy that cash into more real estate or stocks.

I want to deploy the knowledge on the opportunities in real estate that I know are there but being OOS makes it difficult to move forward and just discouraged at the moment. 

And, you have all that TIME restored, for other deployment.