Rents have been pretty close to what the housing authorities advertise, sometimes even a bit higher.Fort Wayne’s a solid spot with low taxes and good cash flow—definitely worth looking into.

Use that loan to pay the back taxes and get things under control.

Getting a loan to payoff another loan with a lower interest rate doesn't make any sense. we do private lending and can get double digits returns consistently.

It's a more affordable market and lower property taxes, so you may actually have a chance to cash flow.

Essentially lower my taxable income by $117k?! 

Are you able to use it easily, only with a HELOC.If you lose your tax deductions, then Uncle Sam is happy to take more of your money each year.Good Investing...

You could look into forming a C Corp as an alternative way to own this property that could affect your tax returns differently, I am not a CPA or giving tax advise.

Would you rather maintain a higher price for 4-8 weeks and look for a premium or would you rent it quicker with a lower price? 

Being a real estate professional allows you to treat the income as non-passive, allowing higher high income tax payers to pay less in taxes.

Certainly more areas with lower property taxes.