Hi Raquel,You should consider closing these as two separate transactions to eliminate a potential partial release fee in the future.

The future is unknowable. 

Let me know how I can support you in building the life and future you deserve.

I think long term future trends will continue to support affordable real estate markets. 

Since this is my first property I consider it the foundation of my future investments.

The tax benefits have been the largest source for cash income so far; in future years this will likely be lower because much of our tax savings has been due to one-time costs related to purchasing and furnishing a new property.

If not what is the best way to reduce my tax payment to what it was originally and is it possible to prevent increases in the future?

@Joseph Henry Renting could net you $2800/month and offer tax benefits like depreciation, but you'll face future maintenance costs for the furnace, A/C, and roof.

A cost segregation study looks at a property you own to breakdown the various assets you purchased.The goal is to increase the depreciation expense by finding assets that have an asset life less than 27.5(residential) or 39 years(non-residential).Whether you should get a cost segregation study done is whether you will benefit from the study.Will you be able to use the added depreciation now or in the near future?

Just trying to talk out loud and I dont have alot of "like minded" people around.I agree that the house in Cali is an asset that has the most potential for future scale so it would be hard to get rid of unless there were better options out there.