However, in California, each LLC incurs an $800 annual franchise tax plus gross receipts fees if revenue exceeds $250,000, and property insurance may cost more.

The contributions are lower so it takes a while to build, but once you do, it's tax-free investing. 

Cash flow is definitely the biggest challenge; both in terms of finding properties to buy that cash flow with a loan on them and just company wide given interest rates and labor/material is up and, at least where I'm at in Jackson County, MO, taxes are way up too. 

My question is do I have to recapture all the depreciation for tax in 2025?

If you're using Zillow or the tax district or almost any public facing website, I always question how good the comps are.   

Taking a break from working on our 2024 bookkeeping and taxes. 

I've done it at times, sometimes 6 figures, but always do it so that there's no tax burden on my recipient.

So if you buy a 5 bedroom house and rent the spare 4 bedrooms = you can still sell tax-free under the 121 (you just pay back depreciation) If you buy a duplex and rent 1/2 and live in 1/2.

Sometimes hard to find this happy medium in rate sheets, though.Another consideration would be taxes - points are typically treated as interest, so if your tax obligations are high this year vs being higher in the future, then this could also impact buying down now vs paying a little more in interest in future years. 

If you need financial help, ask under the "Finance, Tax, and Legal" forum.