Depreciation benefits - cashout refi?
Hey all, I'm a noob to all this but had a question and looking for some guidance.
I have two out of state properties, both mulifamily. I owner occupied one and bought the other as an investment. The investment property is being remodeled and is almost ready to hit the market. I have no desire to be an out of state landlord or dealing with property mgt companies for both properties.
The other property is a duplex, both sides are being rented. It's worth about 350k, I owe 150k.
My question is how does depreciation work with the property value? Would it make more sense to sell the property outright (I've owned for over 2 years and will make less than 150k so gains aren't an issue) or do a cashout refi to roll into another property and get depreciation benefits from the higher value? I'm not too clear on how that whole thing works or how much the depreciation would actually make a difference. Any guidance is much appreciated.