The $100,000 cost of the original structure in 2021 would not be depreciated further because it was demolished.So, for tax purposes, you would only depreciate the cost associated with the new construction, not the original structure that was demolished.

If you are interested in moving your entire portfolio, would you peel off (tax purposes) or dump everything?  

There are only 2 blocks on West Pomona Street and the two blocks total 90 tax parcels.

These are reported and "retained" on IRS Form 8582.Of course, if you are unsure or would like additional guidance in determining what might fit your specific situation, please reach out to a CPA/Tax Professional who may be able to assist.

You should familiarize yourself with your state laws on that.

One thing to consider when you are budgeting is the taxes and insurance.

As a first time investor in a brand new state and city, we aren’t totally aware of certain laws but definitely want to do what makes the most financial sense as well as ethically sound decision.  

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

If it's important to be near the Bay area then maybe consider the Tahoe Reno, NV market because it's only a few hours away if you need to go to the office and it offers a landlord friendly environment, low property taxes, and no state income tax.

What I mean by this is considering how much your down payment returns to your net worth (appreciation, loan paydown, tax benefits, AND rent avoidance).