In actuality, I think it poses a safety risk to the neighborhood.

The price per square foot quote is a tricky measurement to go by.

This way they don’t have to uphold the properties or care for the health and safety of their tenants because they know people are desperate and likely won’t be able to afford a lawyer.

Alternatively, once the existing tenant is out, you can lease at market rate.The real challenge of "non-landlord friendly" areas in the form of: your ability to adjust their rent from one lease term to the next, rent control issues that would limit your ability to ever push rent increases over time, any mandates on required renewal options for existing tenants (typically come with rent control measures) and the ease and speed with which evictions are processed. 

Measuring if a property is a reasonable first, second or last investment is not a function of how much you have saved.

The holes in the boards were there to hold the plaster (because they did not have spackle yet and still had to plaster), just like the wood lathe would. you can repair the cracks just like you would in drywall, i would recommend cleaning out all loose plaster, using a mesh tape and for the first coat some 45 minute easy sand, this product will dry fast and ready for you to put another coat of it or spackle on it, but you may want to solve why you got the cracks in the first place before repairing, usually something needs re supporting. the wire mesh you talk of in the corners can be cut with a sawzall or you can use a drywall hammer and chop it out at the corner ( if your aim is good ) this can be removed and easily patched then with the drywall, just make sure to wear gloves and safety glasses when doing so.

Specifically asking about public safety, appreciation vs. cash flow thoughts, and complexity of building a local team (agent, property manager, general contractor).

If they don't pay the dues the HOA can lien the property or enforce measures on it. 

Also, indicate any safety nets, such as a solid W-2 income.

This is such a safety hazard it's not even funny!