If you are setting aside funds for capex, taxes, insurance, or other expenses that don't occur monthly, transfer those funds to Savings each month and hold them there until it's time to spend them.

There is only 1 guarantee when you buy a property - you are about to spend a pile of money.

Asking strangers how to spend your money is a fool's errand.

I wouldn't spend one minute worrying about that violence. 

They are likely not bad people but they do not want to spend $3,000 and be kicked out first night on a noise complaint. 

The house is a foreclosure so we cannot extend closing date.

Many skip tracing companies have a minimum count or spend.

Example - borrower uses loan to purchase a home in a B or C grade neighborhood for 380k, spends 50k rehabbing primary home, uses 200k to put an ADU in the back, appraisal comes back at 925k. 

In Miami, we all know how people use rented cars, boats and houses to give themselves credibility.  5k for me is pocket change but I never like to spend money on a losing investment. 

I would lean towards recommending that you pursue the deal - plus having the property remain in your family may be a net positive for you and your extended family regardless of the ultimate financial return.