To complicate things I do believe the tenant is moving out...at a snails pace.

Spotless and odor free usually means a move-in ready house fixed up for retail sale. 

Once the out of state systems are in place, you could acquire at a more streamlined pace and potentially liquidate the CA asset.You have options which is great.

Let's say I upgrade my HVAC to replace old if install new condensation units worth $10000 just for the sake of numbers, how does it impact my depreciationWhat section of tax returns has information about depreciation.Appreciate your inputsThanks.It is added as a separate asset in your tax asset detail and depreciated when paced in service. 

If you're in my space, cheap rental SFR in low C-class neighborhoods, well before you get to $120K FCF per year in any given year you're renovating one or more to sell to the retail market and acquiring one or more for additional rental income.

Right now house prices in Canada are skyrocketing at a record setting pace, especially in the Toronto and Vancouver areas.

After everything is said and done you now have a less liquid asset as 2 units tend to sit on the market longer and don't appeal to regular retail buyers (since it's no longer a single family).

Prices are still climbing in LA, albeit at a slower pace. 

Of course tides and environments can change drastically between " re financing" which is causing a lot of concern now, especially for retail

Locally you can find better deals below retail market.