and I thought I'd keep up the momentum and post here as well.I'm a soon-to-be college graduate in Lancaster PA who is relocating to Kennett Square PA this summer.

You have red dots for houses for sale.

I cannot answer your question about square feet amount to range on a SF cost of apartments but that really matter I you have a deal or not.  

On a large scale, we are working on a healing and arts retreat in a 58,600 square foot facility.

Hey, Cody, If you're not finishing the inside it should be closer to $30 a square foot.

An appraiser usually tries to use three homes that have sold recently; he will pick the ones that are closest in proximity, in the same subdivision, similiar square footage, etc.  

There's no room at this point for a rehabber to buy, fix, and sell without going in the red so properties continue to be used as low income rentals.  

It's figured proportionally based on square footage so if the two sides are equal size then each gets 50% of the cost if not it's proportional.You'll have to get with a good Qualified Intermediary like @Dave Foster or @Bill Exeter and they'll help you get this all squared away. 

2) What are the primary red flags I should be keeping an eye out for?

@Courtney Hebert if you're interested in a 203k you might also look at the Fannie Mae Homestyle renovation loan, its similar but has some benefits over the 203k in that it has a little less red tape on the type of improvements you can make, and doesn't have an owner occupant requirement.