If you're new to investing, keeping an eye on property taxes and HOA fees in this area is also key. 

If the signs point to selling, consult your CPA about the tax implications.

But weigh the costs of insurance and taxes against the cash flow and make your decision accordingly.

Your best advice would come, for a Tax Advisor NOT a Tax Preparer (CPA).

Have you passed the tax assessment yet, or is this your first year of owning it?

Out of my 32 properties, I’ve seen insurance rates drop by up to 40% on renewals, and property tax increases are finally slowing down compared to the crazy jumps we saw over the last five years.

I'm a local real estate broker, investor, and manager (100+ rentals, mostly Airbnb/STR and multifamily).House hacking is a tried-and-true method and in Sacramento you can produce some meaningful income while enjoying the appreciation and tax benefits of owning real estate.

What I noticed so far is extremely high property taxes. 

Selling the property within your Solo 401(k) and returning the proceeds to the account simplifies compliance and ensures tax-deferred growth (or tax-free in a Roth Solo 401(k.)).

Finally, check with the Town to make sure there are no municipal liens, Make sure they're on Town sewer, check with the tax assessor to see how many bedrooms the tax office thinks there are, (important if you are flipping) buy ok to have more bedrooms if you are planning to buy and hold.