MO has their pie, they get to eat it, and come back for seconds and thirds. 

We grow and can a decent amount of our food and eating out is nearly non-existant (on rare special occasions). 

The neighborhood is roughly a B-, still has a little ways to go but surrounded by great places to eat, public transit, parks, and the highway. 

Be careful not to eat up all of your equity.

I understand the reason behind this is I have a larger P/I payment which eats into the cash flow.

The key is to structure the rental so that the depreciation eats up your taxable income.As long as you don't personally pull any money from the corporation, this will have no tax issues for you, although your corporation may pay taxes once the mortgage interest reduces over the last half of the loan period.However, in any year where you do pull money from the corporation, the corporation will pay taxes on its income, then any amount you pull will be taxed to you as Dividend Income (the famous Double Taxation of Corporations you hear so much about).I would also heavily caution you against holding property in a C-Corp. 

Now that I've learned from BP about budgeting for CapEx, and the extra maintenance expenses at turn time with mid to lower grade neighborhoods, it's looking like the risks might quickly eat through the first-glance returns. 

Basically the extra $200 or so per month that you pay with FHA over conventional is eating the cash flow.

I have asked sellers where they would be most comfortable meeting and taken their recommendations.A private dining room can be good as well, given the symbolism of eating together. 

What happens is that your QI (the 1031 folks) form a holding entity called the Exchange Accommodating Title holder (EAT) and take title to the duplex so you don't.