Viability: Is this type of project worth investing in, considering the potential returns and risks associated?

Not sure about crime and the appreciation potential. 

Thinking about your target spend (purchase + rehab) can help me narrow down potential markets to suggest.

You will need, or should have, an existing reserve of funds to service this potential rental.

An additional benefit of a detailed engineering-based Cost Segregation Study is that it can increase potential insurance premium savings as well as provides support for the property tax appeals process.Additionally, it can help maximize renovations and improvements.A Cost Segregation study is an IRS approved federal income tax tool that increases near term cash flow by utilizing shorter recovery periods for depreciation to accelerate return on investment.

I have a few potential prospects.

I found a potential house hacking house for myself.

The properties are in solid C class areas that have potential to transition to B.

I’m just suggesting getting tax advice from randoms on BP presents potential issues. 

Including all utilities can make your offer more attractive to potential tenants and make the rental process easier.