What data should I be researching to help me mitigate the risk?
An Opportunity Zone investment should be reviewed in the same manner that a non-Opportunity Zone investment is researched. The only extra due diligence is to review the ability of the manager of the fund for ability to develop a project in 31 months so that tax advantages are not lost. All the same risks apply: management risk; time risk; appropriate financing risk; general economic risk; inflation risk; natural disaster risk.
Area comps, community master plans for developing areas, area developments, projected ROI on your project. If you are worried, look to get pre-lease commitments in a historic rehab so credits can be thrown off. Look at all the things you would on a normal real estate deal. Don't invest in an OZ deal for tax benefits alone.
This is a question best suited for non-technical advisors like real estate brokers, fund managers and the like. Several capable professionals are out there who have pounced on the OZ program and taken time to specialize. Poke around on Google a bit and you will find quality OZ data for sale.
This is really not a tax question, but more directed to due diligence before investing. The data points to consider will vary depending on the objectives of the investment.
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