Based on my initial learning, it appears the true evaluation lies in two components, cash flow and overall return. 

A good agent on your side will save you TONS of money, help prevent you from entering situations where your exposed to litigation, and (maybe most important of all) save you a great deal of time.Just yesterday A client that I walked away from another investment because the seller lied on the RECR (he actually told me in person he knew of several defects he chose not to disclose) got an accepted offer thru me on a property well within his budget that will cash flow over 350$ after all expenses/fees post closing.

Run comps in the area and see what it will sell for, then you know what you have left for construction, carrying costs, resale costs, and profit margin.Numbers don’t lie, but you need to accurately calculate them too.

You can recoup that in 6-18 months.It's a no brainer... the numbers don't lie.

Do not lie to them but if it doesn't come up, I wouldn't bring it up. 

And, here's a shocker:  sellers lie. 

@Drew Lied, great question.

It's knowing how to do the forms right, keep your money safe, avoid any number of pitfalls that the "forms" don't speak to but could submarine your exchange, and help you structure the entire transaction to meet your needs and goals.Within each of the 6 basic requirements for a successful 1031 exchange lies a bunch of restrictions and qualifications that can be shaped and used to get you where you want to go. 

The idea of investing into something and then collecting mailbox money whether you feel like working or not is like having your own golden chicken as long as you take care of it.

He lied and did not mentioned about the bankruptcy.