The current rents are depressing the value of my property, and I don't want to repeat that same problem.  

If this is true, it may depress rental prices in the area when the new buildings come up because of increased supply.I normally look online for this but in this case I don't even know the terms to google for.What are my next steps here?

My wife is also a NCIDQ certified interior designer, so our homes look amazing and the opportunity to snag some depressed properties and convert them to rentals is huge, but no one will give us the length of terms we need. 

Folks that know the Colorado market can probably see the market conditions that led to over 300% appreciation in under 5 years:Difficulty in getting financing for condos during the aftermath of housing bubble bursting, thus, this depressed demand.  

These depressed neighborhoods home prices have appreciated 2.5-3X from the through do not expect any bargains anymore.Buy one is rentable condition as one can not get mortgage(FHA, low down) on the dumpy homes as slumlord.  

Also make sure if it was newly renovated they didn't lipstick the property with carpet,paint, replace door knobs etc.You want big items like heating,a/c, roof, plumbing, electrical,etc. to have a lot of life left on them.If you buy based on inflated rents and then have flat to depressed rent in coming years, higher turnover and make ready costs, and high capital costs for large ticket items you could lose a bunch of money.Make sure the property insurance policy is not a master one insuring multiple properties as the owners policy could be low in cost compared to what you will pay.

Our current rental is located in a depressed area with low-no appreciation, very low home prices, but average rents (for the area.)  

I had an amazing christmas with my wife and 2 little girls, and naturally I felt depressed once it was time to get back to work.I realized I needed to do something about that.

I now have it priced at $94.9kIt is in a small town in North Carolina over 2 hours from where I live currently where the real estate market is pretty depressed, and I was thinking that selling the house now would keep me from having to invest in additional repairs and maintenance as the housing market continues to decline. 

As for avoiding a market that has a depressed outlook in the next 10-15 years, I have to ask again, how can we think we might know what's going to happen in that much time?