I think your fatal flaw in not using an architect.

You do open walls to uncover hidden problems, you do have issues with inspectors, you do go over budget, and it does take longer than you think to rehab.

Even then, as Rich points out, townhomes, condos, and anything with an HOA is intrinsically flawed in many investors eyes.

However, being that it is my FIRST deal I want to make sure that all contracts, and documentation I use will have as few flaws as possible.

I live entirely within my means, though I don't save (one of my big flaws).

We will fair better than Japan no doubt about that due to our innovative culture.With respect to the unemployment data, no doubt there's a huge flaw with our government method of compiling the data.

I also do my own online searching to verify statements, and I have uncovered numerous inconsistencies from potential tenants.

Water, water, water, landscaped streams, water fountains, enough parking space, both covered and uncovered for about 4 or 5 cars. 

But in reality, the inspections are geared towards retail buyers who are looking at nitpick flaws.

The first significant flaw is that you plan to sell a property every couple years.