I mean, I wouldn't mind if fewer people were buying property right now... makes it easier for me to acquire ;).

The question is should I use the first time home buyer loan and get a place that needs fewer repairs or borrow other peoples' money to BRRR my first property?

Increased risk does not imply it will happen, but to discount the risk could be financially dangerous.   

I have a tenant who is not paying, not answering my texts, plainly ignoring me, he is employed and working, Here in California, There are no evictions unless the tenants are a danger to the community or illegal activity is performed inside. 

Then the glass repair guy chose not to replace a dangerous broken window because no one had shoveled the driveway.

Not too worried about the last one- that's just a nuisance, not dangerous.

Most days, I find fewer distressed properties. 

For example, my parents and most of my childhood friends don’t like visiting Chicago or any big city because of “all the crime” as if the whole city is one dangerous neighborhood.

If you want to cash flow at all you are most likely going to want to stay away from the most expensive areas of the city, but I am assuming you mean the more dangerous parts.

North Idaho is a high fire danger place in the summer.