At most, you will pay down the debt, and inflation will eat up all gains. 

I was actually considering doing a shorter mortgage term to gain equity on the property faster.

While there's no strict requirement to match the original mortgage terms, reinvesting the full proceeds without financing or using leverage to enhance returns is key.If you don't reinvest the full amount, any shortfall ("boot") will be subject to capital gains tax, and depreciation recapture may apply.This post does not create a CPA-Client relationship.

Return:Finishing the basement and adding bedrooms can add significant value, especially if your local market places a premium on additional living space.

Additionally, for the AR llc, do I need to register the LLC in California as a foreign company?

Given that you're not married, that adds some additional complexity.  

It'll take time but can really pay off if you stick with it.I'm in Los Angeles and I've investing in TN and GA in the past, and currently investing in SE Wisconsin (your area).Let's connect and discuss the market.

I would have contacted the locksmith tech to get additional details before assuming it was tenant damage.

For example, I see newer investors attempting wholesaling or bird-dogging for other investors to generate additional income to invest.

I know this is a very old thread but if anyone comes across it I wanted to add some additional thoughts that might be helpful.