I understand the portion of the reports analyzing probable profit margins and various measures of return on investments.

I am a buy-and-hold investor who prefers (and currently owns) stock and bond index funds to gain controlled market exposure, so my interest is really just in risk hedging and diversification—or potentially higher profits.My aim is to divert much of my income to investments that will help me achieve financial independence at a relatively early age, retaining a realistic perspective about cyclical market conditions, loss, risk, and expected returns.Thanks.

After renovations, my exit plan will cause me to aim for, let's generally say, a 9-10% cap on the new and improved operating income.

I would highly recommend not skimping on the efforts to eradicate them, as half measures just do not work. 

Nothing aimed at you, but the market doesn't care what you "want", the market decides, after looking at comparable houses, what they'll pay.  

My aim is to create a long term sustainable business.  

I figured 3 possibilities:First Thought: sell both SFR's and aim at purchasing 2-3 4plexes in our area in need for some beautification (preferrably north orange county (Brea, La Habra, Fullerton, Placentia, Yorba Linda, etc)).Second Thought: borrow against both properties, and find 2 mirroring triplexes (or 4plexes) in need of some help.  

In your preferred scenario, surely you are aiming to get the seller to agree to sign the sales contract with YOU?  

I live in a row style house in Philly, which I just measured and turns out to be 14' in width.

Where in CO are you aiming to do the flip?