Since the mortgage rates have been higher than previous years and the inventory has been lower I'd recommend looking into multi family options that are currently cash flowing in areas that values are increasing.

I do many projects in this area and I’d be happy to discuss yours with you.  

Just to present an alternative point of view regarding California residents investing in STRs, I'd say the gambit still works and works well.For one thing, you still get to use the Section 263(a) tangible property regulations' de minimis rules, which probably mean you can immediately expense most of the furniture and fixtures in your STR.For another thing, while for your California return you won't be able to use bonus or accelerated depreciation for the personal property, you will still use shorter 5-year and 7-year lives for maybe 25% of the improvements.But the big thing: The federal tax bill is far, far bigger.

I’d have to keep costs low for it to work.

But keeping the 2.75% interest is definitely something I'd like to keep haha

This is a house that I’d tell others to run from, but since we already own it we’re just trying to determine best options.  

I'd speak with your accountant about the potential tax consequences.

@Joshua Ryan Lindsay If it was me, I'd rent it.

If I've got this wrong, I'd appreciate it if you could point me to the section of Ohio Revised Code or law that says a Seller can't sell the property when there's an earnest money dispute. there is no law . 

I have heard from people I know near the fires (including one who's house is the only one left on his block in the Palisades and one in a similar situation in Altadena) that smoke damage was not covered by their fire insurance..Hard to say what I'd do in your shoes since it sounds like it's more than a financial investment.