But there are too many instances where the descretion of the appraiser is allowed due to lack of nearby comps or personal perception of the neighborhood.

Hey Zach - you are very perceptive.

I think the way our society is now, people will need more and more places to live that a smaller house that is a new build will be a huge selling point.

See what you find, and draw your own conclusions.See: Confirmation bias and selective perception.

It's truly good for society, and I make a really nice profit that rolls into the new homes, while allowing the 12-25% cash on cash return to fund the things above.

But i was raised in a society and family where college is a must if you want to succeed.

This is strictly a perception thing in my opinion, not a legal issue.Also generally speaking the code of ethics for licensees makes things like wholesaling a bit of a gray area in terms of who all gets a piece of the pie (broker's comission split and other distribution of earnings)

In the area I focus on, REO seems to go much higher than its market value just because of the perception that since its a foreclosure its a [st][d]eal.

For example, is there a local building society that typically tracks this info, or does it require calling carpenters, local planning departments etc?

So keep in mind that perspective and timing have a lot to do with you perception of a market.