Is this line of reasoning sound economics or pure nonsense? 

...and even if there is another housing crisis rents always seem to rise and never seem to go down, so as long as I acquire fixed-rate loans, I should always be able to at least break even.Great thing about San Diego is everyone will always want to live here...unless the unthinkable happens...but then we have worse things to worry about it.

For all I know, the economic loss numbers that I think look really conservative might be unrealistic for that area.  

However, in the bubble economy of Kitimat, labour will be stupidly expensive, so you may need to adjust a little further to ensure you have encompassed the delta.You also know that the issue of water ingress needs to be addressed before renovating the interior or you will only end-up right back here.The foreclosure is not really the factor here - though the property is likely in foreclosure as a result of the prior owner deciding to walk rather than confront the water issues.This is an ambitious undertaking and may very well not make economic sense.

All I ask is :  Please, Pay it forward.It’s not an excuse lol it’s just basic economics .

Look up your state RE commission and see if they don't come under the state department of finance/economic development.

Indicates occupants' economic status.

So my current thinking is to rather lend the funds to my local service provider on an arm's length basis on terms that would provide a similar economic return to what we each would have earned on flips under the old (non-IRA) structure.

These levels change with economic conditions and incomes.

If you get audited and you can prove that you had the intent to hold - but - your intent changed due to economic, business or investment reasons, you may still qualify for a 1031 Exchange.It is not automatically a "flip" just because you had a short-term hold.