If you want to even start understanding it, you have to pick a definable "sub-market" and learn that first.  

I get the idea that even knowing a large investment area like the whole city of Phoenix, I need to have some degree of boots on the ground to understand the more defined smaller areas and neighborhoods where growth and appreciation occur.  

This highly depends on how you define "success" in real estate investing.

Always nice to better define "commercial" as to which area......but;Seller financing is very common in commercial, smaller multi-family deals are common.

Because how your account defines it will determine the tax rate to apply.The way a 1031 is accounted for is that the basis of the old property transfers to the the new property via the form 8824 filed by your accountant. 

You need to define your structure.How much liquid do you have??

definately learning alot so far!

I assume by "turnkey project" you are referring to a turnkey investment property.Ever since I started investing out-of-state myself, and then founded my firm in late 2003, people have defined "turnkey" differently over the years.To me and my company, "Turnkey" investment property is defined as follows: The property is in a stable or growth market.The property is in a desirable neighborhood.The property is new or has been newly renovated.The property is cash-flow positive even if fully leveraged.The property is leased, or in the process of being leased.The property is under professional property management.The property has been carefully selected with renters in mind.I have posted and occasionally updated this definition on the About Us page on our website.Your "hands free" strategy to real estate investing is very similar to how I viewed out-of-state investing over 11 years ago when I started.  

The scope of work has to be well defined.

You need to define:good, better, best, lousy and okay in terms of a deal for yourselfI define a good deal as $125/door per month AND 15% Cash on Cash return.