Looking for a house we could house hack, had an incredibly low interest rate on mortgage and house has increased in value about 42%, an estimated 180k in equity.

I've never really done a deep dive in analyzing the area because it is a retirement community, median income is very low, and there arent a lot of jobs in the area.

Consider a HELOC for value-added BRRRRs or flips if you have a low interest rate.

We are looking for low maintenance (so primarily new construction or >2000 and well maintained/rennovated) single family homes.

However, I like that there isn't a lot of work to do and I could still make the property really cute with not much risk.Inventory is so low.

cash flow has just been hit hard everywhere with the rise in interest rates. the properties in my portfolio that cash flow the most are at interest rates that it's not possible to get anymore - low 4s - and somehow there is still tremendous demand for properties that won't cash flow or break even, which is what you're finding.based on what you've said about your current situation... i don't have a good answer for you. 

His credit score is fine but his income is showing too low to get the loan, so I though maybe I could use my HELOC to make the purchase and do a Lease to Own.

At the time, his offer was low, and I had potential plans for that space, so I turned him down.

"Good" areas will be priced high, "Bad" areas will be priced low. 

If before getting a permit you have to dance around for Code Dept officials/ city gov and crime is thru the roof, investments will definitely be low whether real estate or other, but it should be benefiting the city officials to keep things that way.