It all comes down to picking the right areas that work well with your personality and attract the type of clientele you feel comfortable working with. 

And unless you have very deep pockets, you can't afford to be that much off....So as has been said....hire a very experienced General Contractor and have them give you a budget number based on your SOW, (plus they will find other things that need to be done that you will not have seen).On your succeeding projects, you do a budget yourseld first, then hire the GC and compare numbers.Then, eventually you will be comfortable going all solo...but it takes time.

Once you’re comfortable, focus on creating content that reflects your business’s unique personality and values.If editing and creating thumbnails feels like too much, hiring someone on platforms like Fiverr or Upwork can save you time.

In short, if you’re comfortable relocating one of the sides to move in, and comfortable to live in the place, than just do it.

It all comes down to your comfort with risk and how fast you want to grow.

Or they need to move to a cheaper city / state where they comfortably afford.

You should screen everyone the same, but still, it's a bit of a comfort knowing FF is mostly all working professionals.

I'm more comfortable working within those parameters than others. 

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.

I'd also recommend joining a local Indianapolis based REIA asap. the REIA will provide a group of investors who could get you some contractor recommends if you decide to GC the prop yourself.You said it "needs a little work done" but budgeted $50k so those two things kind of contradict unless the home is a larger home...just curious, what's "a little work", if you haven't had an inspection yet and don't feel comfortable evaluating the costs on your own?