CAVEAT EMPTOR:  Remember Email is unsafe and a completed application from the prospect can have significant ID information, eg SSN.I always email the application TO the prospect and have them go to Kinko's to Return by FAX, which is much safer.

Townhouses might be a better bet, check towns like Edison, or East Brunswick.

With that said,  I am hoping someone could shed some light to wether or not it is just best practice to stay in safer areas.  

It will look better and be safer. 

It is one of the less safer areas near Monroe downtown.

Without knowing more, like how temporary this income setback might be, I'd say that this situation is not workable, and your best bet would give them a nice guy break of $50/month, ask them to start looking, and remind them that if they clean the place real good, they can get their deposit back.  

I feel like creative financing is my best bet but not entirely sure how I can articulate it so the deal makes sense to the seller...

Your best bet is to explore hard money products upon the initial acquisition or work with a private lender and refinance via DSCR or commercial loan.

If you have $300k in cash, maybe the best bet is to find a good operator and invest with them as a mortgaged note or find someone to LP with and get a lot of the benefits without doing the work. 

I'd advise to start slower/safer.