@Josh Martin - If you do decide to move forward with a 1031 Exchange there are a number of requirements that must be met in order to successfully complete a 100% tax deferred transaction.

Rust belt income, low quality tenant, deferred maintenance.

If you do not qualify for the exclusion and if you plan on selling the property and reinvesting in another rental property, one option may be to do a 1031 Exchange and defer all capital gains tax and depreciation recapture liability.

@Kevin Phu it's not just location - you have to see the house inside.It's built 111 years ago, still original windows, no central A/C, even exterior is shubby - you can only guess how much deferred maintenance you'll see.After you replace 4 kitchens, 4 bathrooms, all windows, paint all that monster - your numbers won't make sense at all.BTW, it's already not that attractive - it's Midwest, not Cali - you get much better ROI here, but not so much appreciation.This house is not a good buy - it's losing value every day and needs tons of money to become cash producing asset.

I had my contractor write me up a $30k deferred maintenance bid, dripping P traps, the small amount of termites, all the usual dry rot for a 45 year old house etc.. and countered them down $50k to $575.  

There are some benefits of having a corp like being able to establish retirement plans and things you can fund to directly reduce taxable income for the year, but it's kind of just a shell and tax deferment game.That said, I may have heard of someone that syndicated/connected flippers with private money lenders.

If your goal is to purchase a larger multifamily, for example, and you need the money from the duplex, then maybe you should sell (look into a 1031 exchange to defer taxes).

I use the report to determine what needs to be included in the immediate Rehab and what can be deferred for CapEx reserves requirement.  

REITs is your best bet even if it is not a tax deferred retirement plan.

Be nice, defer to his judgement, and do everything they ask.