While proximity to developing scenes and amenities suggests upward potential, the nearby "war-zone" area could raise significant concerns regarding safety, tenant quality, and property value stability.

Be patient as they will eventually move and you can transition then. 7- Play the long game and don't step over dimes to save a penny.Best of luck... just my opinions>Rog

She has a co-signer willing to sign, but I'm hesitant with her age/safety (the garden unit has a steep staircase) and with rent being $1800 is that doable for her?

It's wise to stay informed, be patient, and consider diversifying your strategy.

Extrapolate this over the long term, that un invested capital, waiting patiently for an opportunity in real estate and earns a lower compound rate. 

We plan to use the home for short-term rentals—so safety is important.  

My thoughts on the HELOC are that we could use it to renovate our current properties and use the funds to fix up distressed properties in the future(doing BRRR-like activities) and thinking it could be used as a safety net if needed.Should we be doing this HELOC if we are unable to pay it back in full at a later date.

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).

You just have to be patient and always on the hunt.

Moisture in ceiling; subfloor damage.Moisture in ceiling; staining and previous repairs.Moisture in baseboard and floor.Moisture in ceiling; staining.Moisture in ceiling.Roof replacement; address moisture and leaks.Exterior inspection; identify and fix moisture sources.Fix moisture damage.Electrical system overhaul; ensure safety and compliance.Temporary housing costs for tenants during repairs.