Get rid of debt, build a budget, and save.

It may be hard to leverage that money with a lender but they are out there OR you can simply take the money and buy properties cash if the loan is big enough.

But I also realized she has tried to get her rent reduced twice before this was even ans issue which makes me feel like it’s a money thing also.

If you hire PM on your first property, you are just tossing money away.

On a short term hard money loan yes. 65% CLTV max 

He says he doesn't have the money to pay the rent and to get a new place.

Save up enough for a single family home in as good of a location as you can afford, buy it, and get roommates.

My goal, is tax saving with the STR loophole, but also some rental income.

I can't decide if I want to pursue a lawsuit for them to turn water back on (and possibly lose) or if I want to eat the money for several months and hope there's water below me.

It’s not as hard as you think and if this Amtrak attracts more people to Scranton, not only will they not want to live in an old run down house but they’ll likely have the money to rent or buy something newer.