For those of you who "can't find a responsible contractor", you're either not looking hard enough or your demands are unrealistic.  

Is my dream completely unrealistic?

We can do anything you want, no matter how unrealistic, and it will only cost you _____ much every time you want us to do it.   

And her rent expectation is totally unrealistic without major improvements?

I have to agree with Nathan that keeping every penny out at all times is unrealistic.

Or consider this the seller wants an unrealistic price for his buildable lot but he doesnt have time to wait for his buyer Wouldnt he be better of to take part in a Joint Venture deal where a group of investors decide to build a spec house or multi family units,maybe some nice townhomes or a duplex on this building site.The lot owners contribution as a co investor is the lot itself,everyone sits down and they establish a realistic value for the lot ,the buider and architect present a proposal for the plans and cost of construction, a cost for the project is established and an exit strategy,Wouldnt the seller of the lot /s be better offer participating something like this and attaining the target profit he wants to make?

Like Geof said it's definitely getting more difficult to get houses. 40k with $1,100 in rent is unrealistic but not that far off. 50k with $1,100 in rent is still tough but doable.

Perhaps it is unrealistic for me to expect better than about 10% given this fact.

They lack equity and can't pay RE commissions, or, they have equity and actually have RE knowledge, or, they may have some equity based on unrealistic pricing, or, it could be they are not motivated to sell, but at thier price, it's for sale.

That's unrealistic.