My main issue with new construction in my market is the MUD taxes and higher property tax rate, it will kill any potential cashflow immediately.

Otherwise they will be in a mud pit.  

If it's your first rehab, it will certainly cost more than you plan, your electrical guy won't show, your plumber will have you way down on his list so the project will just sit for a while, your sheet rocker will have to wait until the rains stop because the mud won't dry, your inspection will fail and you'll have to redo that, your refrigerator space in the kitchen will be two inches short because the counter is bigger than you thought, then the door of the refrigerator will swing the wrong way and you will have to figure that one out too. 

I can paint, mud and tape - even "sweat" pipes.

Many of the turnkey guys in our market have pushed into more undesirable neighborhoods to make their numbers work. 

While the term war zone is relative, in summary I view it as a pretty bad or undesirable place to live.

This is why you make your terms undesirable, it is to encourage the buyer to refi as quickly as possible.

Besides the constant noise, they churned the dirt road shoulders into mud pits and I'm pretty sure that my mail was stolen more than once.

You state it has a power pole on the property - well, that might mean you have to discount accordingly to make up for an undesirable situation.

If you and your crew can get in there and crank one of these spec houses out that's in line with other new builds in the area as far as price point, and you can keep from having too much capital tied up on your (maybe) undesirable lots, it might not be a bad idea.