The only way to make money in bad neighborhood through LTR is either getting the government benefit or running it as a slumlord.

For the 10 year period spanning November 2014-2024, single-family prices in Austin nearly doubled, yielding an annualized appreciation rate of ~9% in that period.With inflation nearing its 2% target and signs of a slowing labor market, The Federal Reserve recently made its third cut to the federal funds rate since the start of the COVID pandemic.

It could be fast tracked or it could take 6+ months as government stuff normally does. 

I've consulted a few times over the years with planners and with the way I buy properties, my liquidity requirements, and my concerns about about how government overspending affects the future, makes me a poor candidate for IRAs and 401(k)s with the stifling regulations.   

Tax breaks cost the government money, and somebody has to pay for them.

Would it make most sense to do S Corp federally with C Corp state or LLC state but S Corp federally.

One other market-wide factor I’d throw in is local government policies.

Furthermore, California has a very anti-landlord and anti-real estate investor government that can cause you all sorts of other problems as well. 

If the rental is in Alberta, here's the info from the government webpage. 

Ultimately you can only hold it down so far and the government will eventually get their money.