Just always been kind of seedy and feels more economically disadvantaged than other C type areas.

The disadvantages would be the high interest rate, the need to refinance, and the lower ROI given the expensive cost of the money, resulting in a lower amount of profit each month.Then, there is your personal line in the sand, where you have to make the judgment call of “is the investment worth it”?  

Just out of curiosity, what are the advantages and disadvantages of taking the 15 year loan and owning free and clear in retirement, versus taking the 30 year loan and still paying debt service when you're retired?

Both types of properties have advantages and disadvantages, and the decision is based on your investment objectives, risk tolerance, and available resources.

As others have mentioned, the main disadvantage of FHA is that FHA loans at 90% loan-to-value or less (more than 10% down), have the monthly mortgage insurance premium payable for at least 11 years, and new loans at more than 90% loan-to-value (less than 10% down), have the monthly mortgage insurance will be payable for the life of the loan. 

Tax advantages/disadvantages would not be a valid consideration when making the decision to take title personally or in an LLC.  

This is not in reference to Gene Guarino, but to the inherent and important risks of pursuing this business model.https://www.assisted-living-directory.com/blog/disadvantages-residential-assisted-living-homes/

You'd be disadvantaged because you'd be hit with closing costs and more taxes compared to a refinance, and also suffer the other disadvantages of free and clear rentals compared to leveraged rentals which others have discussed at length, but you wouldn't have any debt, and would be safer in the event of a downturn.

Everyone has to do this, including hotels, so it's really not a disadvantage to anyone to have to charge this, although there are some that are "skirting" the tax law there (HI is starting to crack down on these "Illegal" vacation rentals).  

Otherwise, yes, we are at a disadvantage.