My fiancé gets paid all cash and I am a landlord for my current home, profiting about $2k a month.

Your basement wasnt finished because it would have cost more money and the seller would have made less profit 

Original profit projections could still be made.I have no cash reserves but want to start a portfolio.

Original profit projections could still be made.I have no cash reserves but want to start a portfolio.

They will sell another property with little profit and lots of equity without a 1031 and use the proceeds to pay down the debt on the 1031 property to gain accomplish a lift in NOI and a drop in mortgage risk.

My mom is selling her home and I am considering becoming the buyer for two reasons: 1) She would sell it to me at a much lower price than another buyer. 2) I can see how I can take it and turn it into a profitable cash flow property.Let me explain: It's an old 1 family home that is very small BUT the lot is big enough to completely demolish the current home and build a house that can easily have 4-5 One Bedroom Apartments which can go for $1,300-1,500/ mo. in the town where the house is located. 

Either way - the most profitable way to sell your house is with owner financing. 

So, with the $72,000 you received from refinancing you would have a profit of $47,000 after taking into account the $10,000 you put down on the first house and the $15,000 in rehab. 

Does anyone know any sources to best analyze friendly cities (not most profitable)?

I am a believer in being close to transit when it comes to rentals, and that location is solid.