For example many properties in our market sell between $50 and $150 per square foot, where in other cities with similar populations may sell for $300-$1,000 per square foot but the rents aren’t necessarily 6 times higher!

Foot with updated kitchens and fresh paint.

Could see the possibility of adding a 3rd bedroom with in the foot print.

I'm not talking about Class AAA like Manhattan penthouses for the uber wealthy: I'm taking 4-5 bed, suburban, 4000 square foot rentals. 

Others will say that the equities market is a sham and on rocky footing and to be avoided.To the former you should NOT use this to invest, to the latter you should absolutely use this to invest.My 2 cents:  I'd look into rolling this into an IRA on my next job-change and using a Self Directed IRA to invest in real estate. 

For example, if all 3 bed/2 bath, 1,400 square foot homes in a neighborhood sell for 200k - then that would be the market value. 

(and ill even take the more generous extremes of your numbers) You said you have $230,000 to spend. 230,000 - 45,000 for the land = 185,000 left to work with. 185,000 / 1800 square feet = $103 per square foot to build this new house! 

Other than that typical old house stuff to look out for: rotted floor joist, non-exsisting footings, crumbling stone foundations, settling, old plumbing, knob and tube wires, poor insulation. 

I find it tends to go by price per square foot.

For example, a corner restaurant will do well if its catering to the foot crowd of those wanting to grab lunch while they are out and about running errands.