A state can typically tax a non-resident on income that is sourced to that state, however you can deduct things such as Private Mortgage Insurance, closing costs, pro-rated taxes and interest, and any commissions.Now, I am not expert by any means on this so you should speak with a CPA. 

is any part from Philadelphia tax a credit to PA? 

Or you need a very good PM.In general touch in any democracy state, easy life in republican state.PG county I heard needs 5% county tax, a pain.

Taxes on taxes.It is my understanding that sales taxes should be payed once only on net rental income which is the service I’m providing.Shouldn’t be paying sales taxes on CAI fees and other expenses subject to sales tax as well which I’m not going to go into right now.On my situation, property tax and cai fees are 35% of my rental income.

It is the additional power to completely defer (indefinitely and later eliminate) the remaining Fed cap gains tax and associated state tax as well. 

Most people overlook net returns (post tax), as opposed to focusing on gross returns.

In other words there won't be profit to tax, as far as the IRS is concerned.If that $400-500k is actual profit for you, then I don't see how you don't 1031 it into other property. 

Especially if you're dealing with a heavy California income tax as well.That being said, I think the positives are enough to outweigh that most of the time.

Have you owned the home as a rental long enough for you to know the property tax as a rental not an owner occupied property?

@Steven TorokFirst you want to determine if you are having to pay additional tax as a result of your rentals.