I would focus on determining level of violent crime; murder, rape, aggravated assault, carjacking, Auto theft and the like.

The problem is that another builder down the street hasn’t had any issues and it now seems like there must have been someone we aggravated and their slowing us down on purpose.

You’ll still have money out of pocket obviously but in most cases, it’ll be far less money and far less aggravating than dealing with the courts.

As aggravating as the situation can be, try to figure out the cause of their behavior and make reasonable accommodations. 

@Kyle Garand prices should be determined by rents; whether something is "above what market value should be" is really a function of what you're paying (the investment) vs. what you're getting back (the return), and whether that amount (as a percentage) is high enough to justify the risk and aggravation of doing the investment.Generally speaking, if you invest in a better area, prices will be higher, and returns lower, because the risk is lower (better tenants and more able to hold its value).If you're living there, you'll also need to consider where you personally want to live (personal use factor), but I also recommend people analyze a house hack as if they will someday move out because it's always nice to have that option.Someday you may want to move out of the owner unit and rent it out, i.e., make it a pure rental/investment property.

Trying to do Section 8 exactly like market rentals often leaves people aggravated because you do have a 3rd party quasi-government entity running the show so it's different.But in my opinion, in the right areas and done right, Section 8 can be one of the most stable & profitable niches out there.

I am assuming she is still paying but if she is a PIA the plan to either terminate or raise rent to compensate for the aggravation factor is a good one.

Why not move in and pressure them--LEGALLY--to move through aggravation and annoyance.

The new build may not work for cash flow, but will minimize the aggravation and risk that investors "enjoy" with maintenance and CapEx issues.

Why not do a few cosmetic fixes to make it look like one of the nicer properties in the not so nice neighborhood and sell it before you invest too much into it if you have determined it's not worth your time/aggravation.