I know NYC is very tenant friendly and I'm afraid she knows how to play the game so I don't know what to do.  

Other legal protections afforded by the LLC are a bonus, but I fully realize that I can be sued as long as the property is in my name.

This is not investing, this is called gambling when you play for appreciation for deals like this. 

You can have great schools lots of jobs lots of fine homes in the area with no crime but the downside to all that is very high prices and little to no real cashflow .if you like little to no income and play the appreciation game ,go for it .

I would never pay down existing mortgages I would just let them play out.  

Initial cashflow if we rented the whole place out would be $150-200/month (plus potential extra income from occasional AirBnB bookings of the bonus room with its own separate entrance).

Not just setting up an MLS search for REO properties, but finding individual listings that are undervalued and sending them to me with an ARV estimate (bonus points if they include comps to support the ARV).Turn Around Time - I want to work with a Realtor who can get offers written and back to me to sign ASAP.  

I need to know if the "let's buy this now and repair the property slowly as time goes on" tactic is a good plan for a value-play purchase considering all the above.

(Will leave my opinion of that fund for another time) If that is tax free or tax deferred would come into play too.Well, that's an option some people choose because it's quite safe as long as Oregon funds the pension system. 

But w/o an agent, commission comes into play for negotiations.