Also, I know this would be a "flip" and is somewhat controversial when referring to real estate investing and with that I have a question if it is possible to take any equity from a deal like this and reinvest into a true income property to defer taxes?

I've seen this hold true in so many different places.

Maybe a lower down payment will not impact your payment dramatically but will help you preserve funding for the next project.Thats true.

Is this true?

Taking money out of a property to buy another property is a great technique...we usually call it "leverage".  

Also, this method doesn’t discuss the structure of a loan used to purchase a property, but in general anything above 20% down guarantees solid cash flow.S- Secure Single-Family Home – The Scarlett method is a technique of managing rental properties, not a method of finding a deal or purchasing a home with 0 down.

The true secret to success is failing up. 

You don't have to worry about evicting military members as much (not always true b/c people are still people, but definitely less likely).Bad - If a base closes, and there is not enough employment beyond the base...your rental could be in real trouble. 

Also if it’s too good to be true, then it’s too good to be true.  

You must have a trustworthy property manager or contractor to oversee the rehabs, plus true/honest ARV comps.