Really, I should know, as I've seen some rehabs that were so cheaply and unattractively done that I didn't pursue in purchasing when I was searching in Orlando to buy and rent. 

Of course depreciation on those properties would be relatively worthless to you, but run the numbers and if it benefits you more to have new investments in your retirement accounts you should pursue that.

There are a lot of investors in Cedar Rapids that are pursuing this route and doing well. 

However, we were never able to fully pursue real estate the way we planned after our marriage in 2001, because as the years passed from 2000 or 2001 to 2012 we always let other things get in the way (Deadheads), and that was our fault.

The blogs, podcasts, articles, and forum are excellent resources for you to learn and perfect whatever niche you are pursuing in real estate investing.Also, I would consider joining a real estate investment club in your area and network with other real estate investors and professionals in your area (appraisers, contractors, lenders, title rep, escrow agents, etc.).

My question is: Is this a deal worth pursuing despite the back taxes?  

It sounds like you have a niche picked out that you'd like to pursue.

Since I couldn't afford to go anywhere or do anything, I had plenty of time on my hands to study whatever field I wanted to pursue someday.

I graduated with a bachelors degree a year ago and went on a hell bent mission to pay off my student debt before pursuing any kind of investments, and I did just that!

@Will Glaeser I think it depends on the lending strategy you are pursuing.