You must factor in the closing costs of the 2nd refinance as well to see any true savings. 

The same will hold true in any market you examine I am just using my own market to drive home this point. 

@Jack Lee your probably analyzing properties incorrectly.You’re probably thinking you have to offer asking price – not true!

Is this true?

As for the "Lazy 1031 exchange" reference, a true 1031 exchange allows you to defer capital gains taxes by reinvesting proceeds from the sale into another similar property, but that doesn’t seem to apply here since you're looking at using a passive loss instead of a like-kind exchange.

This will narrow your shopping area then you can hunt for the deals. 

As realtor/investor who specializes in working with investors, I can be your one-stop shop here connecting you with home inspectors, general contractors, and property managers all of whom I know and trust.

Im wondering if it would be better for me to wait until I have the money in my bank account for a down payment, or at least another paycheck in the account (paid monthly) before I start shopping around for pre-approval letters.

Most enticing is it is located on a very well established street with a wall score of 92 - lots of restaurants, bars, shops and a park nearby.

Well that is not true.