That puts more money in the fund to protect taxpayers – and it puts more families in homes so they can live out the American dream."

It sounds like ordinary income, not capital gains. 

There are various stuff that you can deduct.Rather than giving you the list, first let me say that you can deduct expenses that meets these two criterias: Ordinary Course of business Necessary in the course of businessHere are the list some of the items: Mileage: any mileage that is associated with rental activity.

Americans curious to see how inflation-adjusted home prices are doing in various parts of the country, can find the answer courtesy of this interactive map from Harvard University's Joint Center for Housing Studies, which reveals what prices are doing in various parts of the country. http://www.zerohedge.com/news/2017-07-09/mapping-a...

The insurance company is American Strategic Insurance.

@Tanner Christensen and @Trevor Carver, regarding long-term capital gains taxes (gains on properties that have been held at least 12 months), there are 3 different tax rates for long-term capital gains depending on how much ordinary income you show.  

I am sure you will find people with knowledge of your area.https://www.biggerpockets.com/forums/76-americans-international-real-estateWelcome and hope to see you around!

Should I ask for local lenders or does anyone know if American banks will offer a mortgage for international real estate?

Joe,Check to see if American Modern Home or Foremost writes in CA. 

I've been using them for the last 10 years after American Family Insurance dropped us.