If it is real property, it will adjust as the market adjusts. 

@Tashina Taylor The first thing I'd do is to contact a public insurance adjuster. 

All units are separately metered for gas heat, hot water and electric.I've adjusted the numbers to take into account what's been said:- Increased mortgage to 5.75%- Increased vacancy to 5% - I don't know how to account for a one time renovation in the calculator so it feels high- Added a Management Fee of 10%The property now cash flows negative $137.15 - Here's the new report (w/o increased rents) Assuming an additional $1000/month for rent then that would bring me cash flow positive of $+592. 

If you are purchasing in a cheap market, you are in a market that historically appreciates less than inflation which implies in real dollars (inflation adjusted dollars) the RE is depreciating. 

You need to adjust your formulas to use "IF" statements or "MIN" / "MAX".Generally 1250 gain is the lesser of depreciation taken or allowed and net taxable gain. 

If so, does this also have an effect on your personal taxes as well (will it reduce my adjusted gross income?)

Does anyone have direct or indirect experience using public adjusters on commercial insurance claims?

I do essentially the same thing as you, but I adjust the price/revenue ratio based on the area.

Are there massive adjustments or did they go super far away to get comps? 

Shiller, a Yale University Economics Professor, shows how housing prices have changed over time using an arbitrary starting point of 100 adjusting for inflation.