By distressed I mean rents are significantly below market rate, deferred maintenance in the units and the exterior of the building. 

@Nat Chan I would defer to Dave Foster.

I will close by saying 90% of the buys I get presented are off market investor purchases, 75%+ of which are investors who didn't properly account for maintenance items and have either suffered a declining asset/ tenant/ rents cycle from deferring such items or are not capable or willing to make such cost improvements.

Sure, you can stretch it and defer but a lot of the times all you are doing is kicking the can down the road. 

It’s an older town and many of the homes have years of deferred maintenance so definitely take that into account. another issue investors run into in Ogden is having squatters move into vacant homes.

So you've got a lot of options depending on where you're accountant comes down.But I'm always a fan of tax free now vs tax deferred if everything else is equal.

You claim to be making more cash flow but you've already had to evict a tenant and three more are moving out so it sounds like you'll be losing money.My suggestion: step back and look at the condition of the property because it sounds like you have some deferred maintenance issues that are finally coming to light.

SD IRA is tax-deferred vehicle, you are not paying tax on the income so there is nothing to write off against.

Not positive but you don’t have to pay taxes on the total if you put into escrow account as deferred revenue....if your working on cash basis you get paid when you earn it each month...

These things cost money...you could blow through your CAPEX and maintenance budgets easily when they're that low.I also saw you didn't have an initial set-aside for issues -- I did the same thing and I've spent about 10,000 on my duplex in the last year just handling deferred maintenance that wasn't apparent.