That is primarily because the cost of money (interest rate) is twice what it was two years ago.I suggest that you adjust your thinking about buying a vacation rental just a bit.

At the current pop-up rate, may I suggest turning it into a whac-a-mole game. 

What kind of rates can I expect?

IMHO: anyone hoping for a price correction better hope…There aren’t 1,000’s of other people waiting for the crash to either beat them to the deal or bid the price up  Current owners don’t hear that rates will drop this year, maybe in a few months. 

Does anyone have a bit of information on what rates I can expect to pay for CA capital gains?

Those numbers would leave a landlord bleeding cash under the inflation rates we have seen in recent years.

Our current interest rate is 4.875%.

Pick the one that rises to the top. 

Is the rent rate accurate?

Many carriers will not insure someone in this case at all, and the ones that do (if available in your state) will charge dramatically high rates, think $10-$20k a year for a policy.