Go Big (4plex, spend 700k +) or 2.

An LP writing a $10mm check, likely, will visit the offices of the sponsor and spend a few days with them.  

They're spending tax-payer money, so they'll cut a check without batting an eye.Document condition before and after with photos, inspect regularly, and you should be fine.

I believe the neighborhood has some of the strongest fundamentals in the entire city but its incredibly easy to make the wrong assumptions when investing in Mount Airy if you don't truly know the market and the only way to do this is by spending considerable time in the neighborhood. 

I will spend around $5000 - $7000 a year for tax planning and filing.

If I had ten thousand liquid cash to spend, I'd probably do a house hack two-family and obtain an FHA loan with only 3.5% down. 

I'd suggest choosing an area that looks like it has potential and then spend your spare time just driving around.

you are competing against other investors spending thousands or tens of thousands of dollars on marketing every month. 

Recognize that going out of state will come with a lot of learning and education; there's a cost for that of your time and if its better served educating out of state or spending it on the property.

You may need to spend every cent they offer on moving things out and back in, but that a small price to pay if after this is done you have your property back in the condition it was when you started.