Hello I am still new to this real estate business and I am wondering if it is prudent for a newbie to buy their first multi-unit apartment building on a block full of competing apartment buildings or should the approach be to buy an apartment on a different area of town where there are little to no competitions?

The neighborhoods change a lot in that area from block to block and I would recommend familiarizing yourself with the area to be fully aware of the class of property and neighborhood you are buying.

You could go 5 blocks west, same neighborhood/values....go 2 blocks east, different neighborhood with values 40% higher/lower.  

There are plenty of good well paying jobs around, mostly factory but the work is here and close by although I’m new to the area (5 months) I’ve noticed some hot spots for crime, drugs mostly, but what confuses me is one block is decent, yards maintained, clean looking, nice curb appeal, but then you go a block down and it looks like a war zone.

It is mildew resistant, but I thought Kilz was mostly to block stains and acted as a sealer.

As @Rob Bergeron points out, there are some pockets experiencing higher demand/growth but if you're not familiar with them then you could end up buying a block or two the wrong direction and having a horrible time with your investment.

The block that I am buying on has other investors currently rehabbing houses as well. 

Our place is a couple blocks north of there.

You can go to H&R block and have extremely low fees, or go to a big CPA firm with specific specialties and pay huge amounts.But try reaching out to @Natalie Kolodij, she may give you an idea of what the rate for say a real estate specialized cpa is.

Here is that list:KitchenWindow near panty doesn't openPantry shelves and storage areas not cleanedOld items left in apartment (former tenant's junk in closets, etc)Hole in bottom and side of cabinet above stove (just an fyi)Floor has damaged areas (fyi only)Back Corner BedroomBroken exterior window, glass not cleaned upBlind missingWindow not sealedCrack in ceiling in closet (fyi only)Middle BedroomBlind in right side is brokenLarge BathroomFan makes loud high pitch noise (only sometimes)Minor stains in floor (clean if possible, or just fyi)Molding is cracked on tub (fyi)Blind doesn't work properlyFront BedroomBoth blinds missingFront ClosetItems left behindLiving RoomWindow sills very dirty, have spider websSmall cabinet to right of fireplace difficult to open/shutFireplace is not cleaned - wood and ashes left behindStain on entry french doors (looks like a booger)GeneralHot water does not workAll window sills are very dirty, some have spider webs (screens were left open allowing spiders to access)Many electrical outlets are recessed further than they should be - some plugs may not be able to plug inWindows (interior or exterior are dirty/stained)Door from dining room to kitchen should be removed (no door handle from dining room side and door scratches ground)Vegetation at front door needs to be cut back (covering mailbox, blocking entry to door)Exterior of house is dirty, should be power washed - looks like a sore thumb in the neighborhoodWe basically agree on having the apartment cleaned (windows, "booger" thing, etc), loose items removed, removing the door, correcting the vegetation and having all of the blinds replaced, hot water being corrected.