Basements have fire/life safety codes in the US.

Point being, I encourage others be patient and be persistent.

If need be I could tap into the equity from the first deal to fund my renovations on the second property, however I would prefer to leave that equity as a safety net incase anything big comes up.

Instead of seeing it as an oppressive and dangerous wild animal that you have to kill for your safety, think of it as an animal that you need to tame and then use. 

The best advice I can offer is to be patient and wait for the under market property.  

Definitely gotta be patient n persistent

Do you know any neighborhoods known for their safety or walkability?

Without that info I can only tell you stay patient and work it out.

I also will add some cushion for more safety in some expenses:Purchase Price $205,000 asking and current market valueClosing Costs ~$7,00020% Down Payment $41,000Total Cash Needed $48,000Financed Amount $157,000Mortgage Mo $772.35Property Taxes Mo $208Property Ins Mo $208Lawn Care Mo $120Management Mo $312Vacancy Mo $78Maintenance Mo $208Capital Expenditure Mo $208Total Monthly $2,114.35Monthly Rent $2,600Monthly Cash Flow $485.65

I didn't want to move homes to them that were in complete disarray and had safety issues.