Your strategy of re-marketing a 3-bedroom plus office as a 4-bedroom home office is a smart way to boost rental demand and rental income without major renovations.One insight I’d add is the potential benefit of exploring cost segregation studies once you build a larger portfolio.

Theres many benefits being well capitalized. 

Additionally with further rate reductions, many mortgages originated within the past two years would likely benefit from a refinance to then current mortgage rates. 

If there isn't one present, has anyone seen any ROI benefits of the installation?

@Salvatore D'Agostino Sounds like you've got a solid grasp of who does (and who doesn't) benefit from Cost Seg and are looking for info specifically about the Cost Seg process and results. 

If you are originating the CFPB rules are the same for a land contract or mortgage, so I don't see any benefit to creating a land contract.

On an 8 plex, there isn't much meat on the bones for the amount of work needed for Management, but when you factor in an additional 24 units, that starts to benefit the PM, so there is more room to negotiate.Initially, the cost of PM outweighs your returns. 

Are there any strategies I could use to still claim the depreciation, or any way that the transaction could be structured such that I don't lose on that tax benefit?

So if you sold your new property for exactly what you paid for it two days after buying it you would still be paying the tax that you had deferred in the 1031.So, going from CA to CA doesn't benefit you.  

If you feel that this is something that will benefit you in the long run then, why not.