@Emily Gowen so as you pointed out you would not have to do a 1031 exchange on your current home to avoid the capital gains tax and coupled with what Dave Foster pointed out I think, speaking from experience you would have a high likelihood of success. 

More important than identifying target areas is establishing relationship with a local investor-friendly professional who has personal experience in investing in Cleveland.

No management costs as it would be self managed, and estimated property taxes by the average of the past few years.

How do we minimize taxes on the profit we're making on this first home? 

If you aren't familiar with Baltimore, I would suggest it's a hard no and say that you are trying too hard to make cash flow happen talking Baltimore and tax liens and auctions.

It's almost like they tack on a few hundred dollars to the order and forget to charge sales tax

The 1031 exchange will indefinitely defer all tax on profit and all depreciation recapture.

@Chris SeveneyI agree it is not the most professional website I have seen.

I have a few rentals with section 8, and they are professionally managed.

We have seen that having a professional marketing piece builds credibility which is invaluable in this business.