But I am looking to minimize the risk by thinking through good structure on the front side. 

My advice was to someone comfortable in their life path wanting to take advantage of current success to ensure future success while minimizing risk of loss.I wish I was able to take 3% money and turn it into 10-15% ROIs with complete confidence and 100% success. 

You didn't disclose what your education level in the note space is so presuming you're just starting out I don't think that's enough time to really get your bearings.I think minimally you need to determine whether you want to go performing or non-performing.

The back taxes owed fairly minimal.

I wouldn't want you to lose a property over something as simple as that, but on a refi there's minimal risk... just an appraisal fee.I don't begrudge my clients that go with a rando promising the world on a refi.

I am expecting you might have minimal net income ( NOT cashflow ) from your rental.

Since I'm getting paid very minimally I am very far-fetched from being able to put money down for a loan...especially here in NJ where home prices are WAY up there.Research my local market and find a home that I believe to be flipableSince I'm not super knowledgeable yet, I then plan on reaching out to an experienced local Real Estate Agent and asking them their opinion on the property. 

For example buying an older Bungalow with minimal improvements and adding  a secondary dwelling.

But now I am able to bump up rents $100 to $200 with very minimal interior upgrades between turns.

You do not have to accept the tenant they bring you, but if they move out you have a legal obligation to mitigate (minimize) your losses.