Almost every major highway is under construction at the moment (I don't miss that) and traffic is always a joy to be stuck in.  

In Houston the "slums" are seeing active construction and increasing government presence (beautification agendas, active city notices to clean up, etc.) as there is a mass movement for "urban living" within these areas 15 min or less to downtown/medical center.

New construction?

First I require a large option fee that applies to the down payment as long as they purchase (with owner or bank financing), next I charge above average rent then kick back the part above average part towards the down payment AS LONG AS they pay on time, I give them 35 months to buy (since a 36 month lease option is considered a constructive sale by the IRS, I would penalize myself by making the option longer and have to pay taxes of a sale in year 1 even though never received the funds), and lastly I follow up with owner financing which they are very close to having enough funds after 35 months anyway. 

The work that was done was based on the evaluation recommendation of "long term construction  material shrinkage, deterioration consistent with age of the structure, and differential foundation movement". snippet from summary.

As an experienced builder of new construction projects, would you attempt to beat the highest recent sale price of mid 600's?

If you are a buy and hold type you will find many opportunities available; perform your due diligence as many houses require more construction efforts or cosmetic improvement than others.Hope this helps.  

In my experience, pricing in this area is generally 15-30% lower across the board than say new construction, insurance work or home owner improvements thus in order to actually run a company in the black I would have to complete 3 foreclosure/investor renovations in order to see a sustainable profit margin.

I have been in the construction business for about 40 years.  

Not its saying simple, however its highly possible with the conditions in this market.I can go into detail about the additional million plus people moving to the area, the light rail construction,  and other factors but thats another topic.Same goes with the "trophy numbers".