If you chose to reinvest that money you should be able to make it make much more than $800/month.An alternative approach if you strongly believe that future value will be much higher would be to harvest the equity and keep the property, but the new mortgage would essentially destroy your cash flow. 

All I come to is vote harvesting. 

You could also just harvest the gains from all the properties with notes, and sell them year by year.

As mentioned above, loss harvesting. 

My neighbor tells me that everyone harvest elk at the back of my property, in the valley where the stream crosses.

Or let's say the fund never earns enough income to fully harvest the entire remaining 25K that you're rolling forward from year to year. 

That said, if I were picking up a property like this I would want to have a decent amount of cash on hand for whatever issues might come up.On rents, I'm getting 1400-1500 for a 3 bed 1 bath (same small bedrooms) in Little Village, but that is all the way on the other side of Little Village, near the California Pink Line and Pete's Fresh Market. 

Once you talk to your tax person you should have a lot better idea as to what will work best for you.Some general tax write off ideas:Does your business need equipment that you can purchase and depreciate aggressivelyCan you do Stock loss harvesting (Sell a stock you have at the loss take that as a write off to help offset gains 3,000 cap I believe) Repairs/ upgrades to existing real estate you choose to use as a write off all in the current yearRetirement accounts (you may also be able to contribute on behalf of kids) 

Sedona is attractive at first glance but it has developed a reputation as a crystal shop, pink jeep, airy-fairy tourist town.

In the progress of weeding/ harvesting equity from duplexes which are good- but not great cash flowers.