As for the repairs, it doesn't hurt to ask the seller to fix, however, in this market, odds of that happening are slim to none.

Pickens' are slim on those but a great place to look would be the Bigger Pockets marketplace.

That all being said, you can a) continue doing what you're doing and deal with / ignore the crappy neighbor, b) do whatever you can to win your neighbor over by meeting with him face-to-face, make him feel heard and important (chances of success are slim), or c) cut your losses, sell, and find another location. 

@Shawn Ward Yeah, MLS looks like it's going to be slim pickings in my area.

In fact, if they don't appreciate the chances of making any profit are slim when property taxes, insurance and maintenance costs increase every year and when you get hit with a bill for a new roof, new pipes, or you have to pay $6,000 to 20,000 because a tenant destroyed the house, or as the house ages you need to do install new kitchens, bathrooms, floors, etc..Owning single-family homes for rentals is exactly the same as owning your personal home where we homeowners are constantly spending money on the home.

I am trying to find a way around it, but things are looking pretty slim.  

There are other locations like Ithaca where cashflow is slim but appreciation is pretty much guaranteed- Binghamton is the opposite.

If that's the case, there is a very slim chance this property is paid off.Would REI Pro, for any reason, report a preforeclosure, when it is in fact, not in preforeclosure?

Maybe Burien, Tukwila, or Rainier Valley for condos and the slim amount of townhouses (if any) under 300k.

Margins are too slim for this where I am located (Baltimore, MD) but could be an interesting idea if its a very high cost area or large house.