What key indicators would you recommend for identifying these promising neighborhoods?

Focus on turning it around and getting it rented as quickly as possible to minimize losses.2.

These things though are minimal.

Rent control is a strong indicator of an intrusive government.City Selection ProcessBegin by evaluating cities with a metro population of more than one million.

I do income potential reviews for clients all the time, every market has subtle differences but these are generally good indicators. 

Being upfront with clients and highlighting your strengths—like your market knowledge and dedication—can help minimize the impact of transportation issues.If you're concerned about the costs, maybe focus on building a client base close to home, where transportation won't be as big of an issue.

Also, it’s interesting to note that not maintaining corporate “formalities” is one indication of “disregard”.  

Minimal risk and upfront cost (liability withstanding).

Some will indicate risk margins - even though flips like the ones in your area aren't impossible, on your proposition the risk factor would be through the roof. 

When you know the buying process, the neighborhood, and how to find the property on your own, and are ready to buy another property: How can you avoid the 2-3% buyer commission portion going to an agent on an MLS list...