If it's truly a bad area for your (consistent) criteria then you shouldn't buy there regardless of price point.The advice here has been fairly on point, you shouldn't bid emotionally.

They seem to be very emotional about the  whole process buying process so I'd only consider flipping there again if I have a much bigger spread.

Let the numbers help you decide on what to do vs. emotional feeling for your house. 

Tenant's security deposit to be transferred at close.Option 2: Closing pushed back until tenants are out.The seller was "emotional" that he did not read that clause in our offer regarding tenant removal and wanted to us to meet at a coffee shop or elsewhere to "hash it out" because he was "tired of the back and forth".

She goes on an emotional screaming rant about how her family can't live in a house with no bathroom.  

That’s what so great about running the numbers it will give you the answers without emotion or subjectivity.To answer your question new construction does usually sell for more and rent for more and faster as well.

If you're buying it for yourself to live in, then let your emotions control you.

I.e. we have an interested tenant with emotional support dogs, and another on government assistance housing, so I'm trying to be very careful to not let there be any interpretation of discrimination.

I am trying to not get caught up in the emotion because I see the potential of the property.

House hacking and BRRRR are great strategies to build wealth and getting the house of your dreams is more of an emotional buy than a wise investment decision.That all said, a happy wife is a happy life so obviously you need to tread lightly here.