Tax mitigation.

Mitigated or not the house will always sell under market value because of the blemish.

One particularly neat trick in your situation to shelter against a down turn and mitigate the tight timelines of a 1031 would be to purchase say two properties with your proceeds - one for cash and the other with maximum leverage.Has the effect of eliminating the risk of leverage from at least one property so if the market goes south you have one protected. 

I also decided to go with a house with a family currently living in it to help mitigate the risk of having to waive the inspection and give them 90 days to find something, close on and move.

In the house we had to mitigate we replaced all the windows and cleaned/ primed and painted all the stained trim in the whole house. 

I am sure anybody armed with this knowledge will mitigate any risks. 

Even then for tenant mix I would only want say 1 to 2 tenants out of 10 with that product mix.So to mitigate risk you build in ( when you buy ) certain assumptions for leasing commission, tenant improvements, vacancy, etc.If you plan for exits and account for a lot of items people miss and buy right then when these events occur they are not things that take you under.The nuances are key to successful investing.

It would be awesome if you could send me a PM or post for everyone to see how you started out ( breaking down the deals and info), how much money did you have to start, strategies used, ect.

In this manner, profits from real estate investments can be returned to the offshore company, but the identity of the owner can remain secret, which mitigates the tax concerns that many international investors have.

There's a lot of risk involved in any investing strategy and the best way to mitigate the risk is to get educated and surround yourself with knowledgeable folks.You can definitely find information online and in books on how to invest.