But if it's a safe, respectable and working class neighborhood that is expected to stay as such, I'll likely opt to refi and raise the rents. 

I bet you are stuck with what you have.

I bet he does not report leaks/issues when they come up.

I would bet that you have to live there for at least a year and you can probably only get a FHA once every 5 years. 

Use the strongest bleach you can buy - some of the cheap brands the % of sodium hypochlorite is cut with water - and it will be safe but aethetically unpleasing.

Even if you could buy a duplex with low money down (3.5% FHA), you need reserves of 10k to be safe so until you have money for the downpayment at 3.5%, closing costs, and reserves, just learn and save money.

Have to look at many other factors although it’s safe to say it’s not a GOOD thing to have higher than average crime in the area you own a rental

You bet!

If you want cash flow OOS but local investing should be your best bet.

It has gotten a LOT more difficult with the SAFE Act, Consumer Finance Protection Bureau, pro tenant/borrower judicial decisions, as well as state and local ordinances.