Good for you to adopt a dog you knew would not be the easiest to deal with immediately. You have a lot of time to figure it out, have thought about it and seem willing to put in the effort. So things look good so far.

So nice to hear that you had a great conversation with Mrs. Jenkins. Something as little as knowing that 6 - 8 a.m. is her time make things a lot easier for everyone. Would she be open to giving him treats through the fence? Perhaps asking if you could help her beautify the fence up a bit beyond a tarp might be a nice gesture.

rd95 gave great advice. And kb is right that almost no dog is truly an indoor dog. You are going to have to walk him at least 45 minutes a day past your neighbor's dogs, who you have no control over. But you can control your dog in time and with effort. I think it would be an excellent idea to have a trainer come over and go on walks with you. I would also suggest researching a doggy day care with trained staff. That is a really good way to socialize them and tucker them out.

As far as barking and lunging, as least you are getting plenty of signals that will hopefully diminish with time but you still have to aware of. And that does not mean they want to fight. If a fight happens, remember that dog fights almost always look far worse than they actually are. If it comes to it, the best way to stop a dog fight is to grab the dog by the hing legs and pull and twist. They have no leverage if they are only on 2 feet and the fight is usually over.