From what I can tell online, the RF1 zoning district is designed primarily for single family row houses (like townhomes).

I am a former interior designer and did a great deal of work staging homes for sale.

Maybe your situation is different and if you don’t feel comfortable in the neighborhood then this may be a moot point anyway.As for FHA, my understanding is that you must intend to live in the house for a year  it sounds like you did intend to, but due to unexpected circumstances- lead exposure and unexpected unsafe neighborhood- you have to move.

You should screen everyone the same, but still, it's a bit of a comfort knowing FF is mostly all working professionals.

I'd also recommend joining a local Indianapolis based REIA asap. the REIA will provide a group of investors who could get you some contractor recommends if you decide to GC the prop yourself.You said it "needs a little work done" but budgeted $50k so those two things kind of contradict unless the home is a larger home...just curious, what's "a little work", if you haven't had an inspection yet and don't feel comfortable evaluating the costs on your own?

One of the project neighbors slowed the project by 6 months by appealing the staff decision through design review, planning and zoning and city council.

Although I am outside of my comfort zone and feel like an absolute tool (I'm lost and that's uncomfortable), my faith, drive, and want to achieve my family and life goals continues to motivate me to get outside of my comfort zone and push for continuous improvement.  

Ensure the STR’s projected income comfortably covers new debt, even with conservative occupancy rates, and maintain reserves for market changes or vacancies.

We ended up going with GC we feel comfortable with, will work with insurance company and complete getting our house back together.

I'd consider doing some kind of cash out refi on the property at a number you're both comfortable pulling out, while still leaving $ for reserves to maintain the STR you currently have.