When you say "we," are you speaking about your business or your personal tax returns, or does your business flow into your personal returns because you file as a sole proprietor?  

This has made it an attractive investment for some, though high prices and increasing interest rates are currently impacting affordability.Addressing your specific points:High Taxes: Yes, California has high taxes, particularly income tax.

Income vs Capital Gain.

The key is that in order to completely defer all tax you must purchase at least as much as your net sale. 

The $100-$300/month amount is just a generalization - but the point is, on a monthly basis you don't see a huge income per property - and you also have to absorb repair expenses and such as well.   

Taxes have to be paid, so does insurance, what about maintenance? 

@Alec Barnes we use Debt-To-Income Ratio (DTI) instead of income = 3x rent.Reason?

With that said, I am in the position where I will not need a monthly income from my rentals.

Getting a DSCR of 1 in some of the higher tax counties of Georgia is tight, but we've been able to get through them.

Traditional IRA withdrawals are taxed as ordinary income, with a 10% penalty if under 59½, potentially pushing you into a higher tax bracket.