If you consistently analyze properties, it will be much easier to recognize a good deal when it shows up.5.

When I was earning a lot more than I needed, it was easy to take the risk with disposable money.I want to quickly point out that in order to really take advantage of getting these seemingly tremendously lucky deals, you need two things:1) Recognize the Opportunity and2) Be prepared (usually by having the money for it)When I started working in my professional IT Job, that gave me the preparation part.When I started learning about the financial calculations, especially Future Value, NPV, DCF, etc.

I recognize that Arlington is already expensive and was not planning to buy directly there, but rather around it.

You have to know how to read financial statements so you can begin to recognize a problem when it starts. 

They will most likely have to bring cash to the refi but at that point with the proven income I would think they wouldn't have an issue getting a loan.Purchase for 35k (31 + my fee)Initial cash outlay say 14k (repairs + closing costs+ fee)Conventional financing 20% down loan at 40k value, they buyer would have 20% of free equity to act as DP.With conservative #'s it would cash flow $2700/year giving a cash on cash return of 18%I guess I figured that was pretty decent, or am I still missing something

Judicial Reports give great information on their bank loan and any other recognized liens on the property.4.

If you’re personable and motivated people will recognize that and want to teach you. 

They also do not recognize the 1031 exchange. 

@Ben Goodall If you do a complete 1031 exchange you will not recognize a gain. 

With a 1031, you are reqyired to place every dollar from the sale.Finally, the investment in the OZ does not need to be real property, but could be a company that generates x% of revenue in OZ.Just make sure the location is recognized by the IRS as a Qualified Opportunity Zone.