Any excess (it will be less than the $400K you might think) will be taxed at the long term capital gains rate. 

Seems excessive for that category.

If you can reinvest the 40k into an investment that will spin off income in excess of 2,904/ year (around 7.5% ROI) then it makes sense to refinance.

California charges a minimum tax of $800 a year per LLC, and more if you have gross receipts in excess of $250k.

Renters should have some way to protect themselves against being harassed by fat bitter old women who have nothing better to do than harass people.

When renting you have a fat rental amount plus utilities and maybe the cost of lawn care.

I have a clause that says if the water bill is over $100 in a month they owe me the excess over $100.

Personally I don't want to have any excess consumer debt, but understand the necessity to use debt to leverage asset purchases.My two centsDon

What are some ways to profit from it, without selling too much of it, or logging it excessively? 

I would never want that to happen at any of my properties, and the clearest way to prevent that is to NEVER have a pool.If you think that this house is your future personal residence, then you should move there now and forget about ever renting it, just my opinion.I have filled in in-ground pools and dismantled above ground pools, its a hard and fats rule no pools at rental properties.