So the tax payer which has to stay the same throughout the 1031 is you and your wife by virtue of the joint tax return you file. 

Cash out Refinance:  If I cash out refinance, my new mortgage+ins+tax payment increases about +$300/month and therefore will not be cash flow positive (after factoring repairs, mx, capex, etc).  

High income earner to me means high tax payer. 

Real property depreciation unrecapture is actually not taxed at your ordinary income rate (depreciation recapture is).

My question now would be are there entities such as an LLC that you can report you rental income under were the tax treatment would be different versus ordinary earned "W-4" income from a job?

take the depreciation, because it lowers your ORDINARY income, which is at higher rates (up to 35%) versus CAPITAL gain which is up to 20%.

I just don't think I want to have my rent paid by taxpayers while I still have a mind that works great and should be able contribute to society in some way.

That's taxable at ordinary income rates, maybe with SET.Fix and flips make no sense if there's no work to do.

So i then found a new address for the potential owner (or taxpayer) and mailed another letter expressing my interest in the property.

If the need for repair is a result of damage done by Tenant and/or their guests, and not that of ordinary wear and tear, Tenant agrees to pay for the repair.