Some states have better treatment for LLPs in a very specific way. 

If your accountant sets it up this way then even though you don't complete your 1031 exchange you will still get until April of 2024 to pay the tax.These options - full deferral, no deferral, or installment sales treatment are all why your 1031 has to be over by the time you file your next taxes.

No special treatment. 

All that needs to be done baring an inspection is a new bathroom a few windows and a water treatment.

Appreciation isn't even guaranteed in A and B class areas, so relying on the possibility of appreciation in lower-tier neighborhoods is very risky. 

@Pepper Bradford Perhaps you are missing the primary purpose of incorporating, which is asset protection, not tax treatment on a few grand a year. 

The regulations are written from the perspective of the landlord making the violation, so I wonder if there is different treatment if the tenant is the one who does the violation.

I pulled up the last termite treatment I did (this was just last year). 

As far as tax treatment once you have 2 years worth of either on your tax return they will count the income regardless of whether it's a STR versus LTR.

If I have a call, I expect answers to questions, i.e. if I ask about the waterfall or tax treatment, I expect straight answers with a full understanding.