Why do you say its bad for the original owner long term?

The bad news is the LTV is 95% currently, and after a $4 million paydown it's still 88.6%. 

There are two reasons this is a bad idea.Investing with an SDIRA (assuming it is not a Roth) will often result in paying significantly more taxes. 

It can work really well or really bad. 

If I can get around this situation, it would be worth carrying some costs for a couple months but if eviction prolongs, a good deal will go bad quick.

My credit got negatively affected but we’re in the process of building hers ( she had no credit nor bad credit) I think we’ll have her credit above say a 700 in the next 6-12 months.

If you're comfortable with waiting 3 years, maybe that's not a bad decision since the building has a foundation that isn't going to fall apart, but yeah it's good that you are figuring out what you need to know to be ready when the time comes.

Not all areas are bad and some of the areas that are labeled as bad, aren't that bad and provide the best cash flow!

It also includes managing your existing investment well to ensure you aren't bleeding money due to bad tenants, excess maintenance, etc. 

Like deferred maintenance, (bad roof, worn out water heater/AC Unit, warped flooring, water damage) etc, unpaid utilities,  unpaid taxes, a second loan, unpaid HOA fees, a bad pool, bad reputation, sometimes squatters, sometimes they were drug houses, and so on.