There's a lack of a reality check.If you're looking for quick money, expect a quick downfall.

In some cases paying off a car or credit cards can actually hurt or lower credit scores due to a lack of credit or no revolving debts.

It's not a competition between the two anymore than a foot race between a snail and a cheetah. 

I have zero competition right now 

Even those markets with oversupply are believed to be lacking significant supply for the mid-term and long-term needs.

Lack of cash / over leveraging sounds like the concern from what the post states.You could flip but you need to know the market your are flipping in and time line rehab is going to take.

Lack of signed off permits may be to my benefit should things turn nasty. 

The contracto I used needed baby sitting and the attention to detail was lacking so half way through the reno I was more particular and communicated my expectations clearly and ofter Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

You could sell and 1031 it into the next property but you'd usually have to time the sale of your existing property and the closing of your new property right.I also wouldn't worry about having central air in the property unless that is essentially a requirement for you to remain competitive with the rest of that market.

Since there is a lack of regulation, many lenders may change the final settlement statement once all is said and done, which can result in a higher rate, more fees, and/or a reduced LTV.