My biggest concern is the safety of the tenants with the icicles over the entrances.

I would not discuss safety, as you could be liable if you pledge the safety of a place.

-Financial discipline - If you're serious about achieving your goals, you have to develop the discipline to save/invest when needed and be patient/prolong luxuries when needed

Then I recommend you network with local investors to find -potential deals-the debt (lender)-equity partners -contractors/property managers Real estate is a long game, so be patient and stick with it. 

Like @Kenton LeVay said, it's shades of Ehhhh from an optics point of view.If you can be patient and put that property into service for a year or two then it would be absolutely fine for you to change the use of the property and move in whether or not the LLC was a related party or a disregarded entity to you. 

Time to keep looking, plugging forward and remaining patient.

BUT all of the fundamentals that make Austin a GREAT appreciation play (if your capital can be patient) are still there and growing stronger.  

@Wyatt Postal I would at minimum immediately notify them (in writing via a certified letter but also via email "for expediency and safety").  

The deferred maintenance scared me off, because if they aren't fixing loose handrails, which are a safety hazard, God know what else they aren't maintaining. 

This is especially true if you do the leasing and are patient as a pm or realror wobt feelblike waiting fir the right person and making minimun wage.