Financially this deal makes sense; however, I am concerned with the safety aspect… I must live there for a year since I am looking for an FHA loan.There are areas close by that i know can have criminal activity but I am uncertain about this specific area (1-2 mile radius).

For conventional financing, it depends how you are reporting your rentals on your tax returns, to determine how the income/expenses are netting in a positive or negative manner. 

It was very childish and unfair of me to “sneak” out in a way "This to me was the biggest aspect I was concerned with handling wrong, so I feel somewhat relieved that I can begin taking things into my own hands and get this property cleaned up and back on the market.I really wish there was something I could look back on and know that I made I mistake on in renting to her, but overall I could not find this mistake in the background, credit, references etc.

If that zero's it out, or close to (maybe you're running a small negative), it should be alright, unless your DTI is extremely tight.

My point is the margins in residential RE is thin (negative at most high LTV purchases).  

If you are easily scared and have a negative mindset, you will probably just waste your time.

It was not only overleverage it was OVER SUPPLY  we all saw that.. so more to than just that aspect.

You’ll gain valuable experience in renovations, property management, dealing with tenants, and handling the accounting and taxation aspects of long-term rentals (LTR).You can repeat this process with another duplex or scale up to a fourplex.

These hazards have the potential to dramatically raise insurance premiums, which could negatively impact rental properties' cash flow.

-repairs and cap-ex can be the most challenging aspect for new investors, there are no standard rates that will work across the board. $200/mo is a safe bet for a SF of this size for cap-ex, and your repair estimate looks ok.