I enjoy networking and talking shop. 

That will allow you several benefits like adding the square footage to your property, having it appreciate in value as more ADUs are added to the neighborhood, legally rent it out within the city's parameters around long-term, mid-term, and short-term guidelines, and feel good about your investment.

Buy the worst house in a great neighborhood and fix up.  

There is a story to every pocket of every neighborhood that locals will know, but you may not, if investing out of state or in a market you don't know.

Talk to some of the Realtors in the city and ask them to define where the neighborhoods are and which neighborhoods they think are best.

Localize City (Homebuyers and investors who want a deeper understanding of neighborhood dynamics and potential risks) 8.

Our pricing projections are based on market trends, historical data, and neighborhood-specific analysis.

There are so many C+ changing to B and beyond neighborhoods now in the city where a $130 - $150k price point will get you a +positive cash flowing SFH with growing equity in a city that is in a having a rebirth. 

Quote from @Elizabeth Rose: @Josh Bowser this tip of doing a quick search on county GIS or software to see if homes in a neighborhood are owned in personal names or LLCs is gold, thank you!

Maybe your situation is different and if you don’t feel comfortable in the neighborhood then this may be a moot point anyway.As for FHA, my understanding is that you must intend to live in the house for a year  it sounds like you did intend to, but due to unexpected circumstances- lead exposure and unexpected unsafe neighborhood- you have to move.