Whatever way you choose, I'd suggest just make sure you can repeat it later.  

If your goal is to be an active real estate investor and call all of the shots, option 4 is your best fit.If you want to be semi-active and call some of the shots, option 3 may be a good fit.If you are looking to add real estate to your investment portfolio but don't want to be active (similar to the stock you own in companies managed by others or mutual funds that manage portfolios of stocks) then option 1 or 2 may be a good fit if you align yourself with a good sponsor.If you choose options 1 or 2, whether you choose to do that with Praxis or any other sponsor, the most important component is to thoroughly research the company.  

So what I've sometimes done is pick and choose from their estimate what I want them to do, and what I want someone else to do because I think I can get a better price or better quality of work or both. 

If you were to choose a more modest lifestyle regarding your consumer spending, you would be able to leave your job substantially sooner....

How do I go about choosing the right city and what data sources do I take advantage of in making this decisions?

My suggestion would be that you speak with an experienced mortgage broker,  describe your situation,  and let them help you choose the best financing for you. 

Whether those are rough areas I am unaware of.If you do go the route of investing out-of-state finding a reputable operator is crucial and also choosing the right market aligned with your investment goals.Hope that helps

(Even if owner is choosing to pay discharged debt because it makes sense)?

No matter whom you choose, I wish this experiment to be a great success that can benefit many BP members for a very long time.

If you choose to pursue wholesaling, I strongly suggest that you put all of your focus on that strategy until you are consistently closing deals.