Keeping it as a rental sounds like a solid option, especially with the low mortgage balance and high rental potential.

I suspect you will be required to sell the property and for less than $399k.  

@Matt J.As an out-of-state investor in San Diego, key tax and legal considerations include filing a California non-resident tax return for rental income or capital gains, managing double taxation with potential tax credits from your home state, and complying with withholding requirements on property sales.

Secondary markets will give you a balance of appreciation and cash flow if you buy in the right pockets and a good asset. 

Analyze cash flow, potential vacancy rates, and maintenance costs before making a decision.Secure FinancingTake advantage of owner-occupied loans such as FHA, VA, or conventional loans, which often have lower down payment requirements.

@Robert SandovalHave you looked into the rules and laws in CA for what requires a broker's license? 

The flexibility, speed, and personalized approach make private money lending a go-to for real estate investors, especially for projects that require quick decisions or more creative solutions.

They will have requirements on how you can document the transfer of funds.

@Brandon Brown I have done this many times on buildings where it is required by code in Berwyn and surrounding suburbs.

PM says that whole house requires repainting on the interior including cielings and that "sealants" might need to be used for cracks in certain areas.