I was wondering if any seasoned fix and flip investors know of any classes, book, blogs, or anywhere I can get more informed on the process.

The house seems to be right on the divide of small city commercial downtown properties, a few middle class homes between us and downtown, and then some middle to lower class homes on the other side opposite downtown.

Are buyers of positive cash flow properties being irrational if those dividends exceed dividends of other asset classes today?

Keep in mind this is how this tenant class lives.

And if that happens then the whole thing blows up.If you want something recession proof then you need to be investing in an asset class that is uncorrelated with business cycles (litigtion finance, life settlements, royalties, etc) and even then usually you're only getting at best "extremely recession resistant".

And personally from experience they can’t definitely do 1031 exchange. depends on how many units, what class and what your criteria, i might be able to help you here.

Negative: the best achieved cash flow will be lower than more working class areas.

With a monthly payment of about $1600 that would be affordable for many middle class families with two income.

Then stress test your analyses to assume that the market will be worse at reposition (perhaps a .5 spread... really depends on the length of rehab... but .5 should cover most scenarios in this current environment). 

I would take the stabilized NOI and divide by the going cap rate in your market for that class and size of property.