The prices are improving for the buyers as the market transitions to a more stable / normal market. 

When we were initially introduced I was going through a hardship and trying to identify solutions Jeff, workshopped a ton of strategies I could use WITHOUT using a lender, so that I could be in a better position to make a more sound decision in the future. 

Yes, that was the point of my reply, to correct the original quote and provide everyone a reference for a more accurate return. 

I am concerned that I could be taking too much risk by investing in a currently undesirable area versus spending more to enter the market in a more expensive area nearby that is currently thriving.3.

It comes down to a business decision and not a moral one for me. 

And again to your point, if you buy a property in a more challenging neighborhood from a position of financial weakness, you'll get crushed.

Ensure you get a detailed fee breakdown.With your solid income and credit, you should be able to find a more suitable loan without excessive fees, so I'd recommend getting a second opinion.

But still trying to conceptualize how to incorporate ongoing expenses/interest payments and loan paydown into that equation to get a more holisitic image before deciding where to live

I would start by getting a look at what you're working with - paying for an inspector to visit isn't a bad idea, but depending on how much hoarding was done, it may be wise to remove some of the junk items first so they can give you a more accurate report. 

Is that what we have here, people dolling up the units- value add- and collecting the extra rents, or are the renters paying higher rents for a more low class living experience?