In reality both of those spots are good for you.

Buying a B class property for 100k because your TK company said it was a fantastic deal can turn ugly real fast when the reality is that its a C- property that is only worth at best 90k after a few repairs.  

But those were all false realities.  

The reality is that they run a business and they aren't going to take a loss.

If any of you have any information, experience, or helpful resources that can better help me understand how this development process works I would greatly appreciate either a post here or a private conversation.I look forward to learning about all of your experiences and am excited to begin turning this project idea into a reality!

In reality, we have 20-30k coming in each month.

Currently the reality of the area is exactly what @Levi Ballard and @Forrest Faulconer have illuminated above, yet a decent number of the folks living in NH are long-term residents who are thankful they don't live a mile or three north and value the access to the highway nearby (among other things).^^^ is speculative, so obviously don't use that line of logic as a primary driver of investing, but dig deep and see if there could be a investing play in the area that matches your long-term goals.

Horrible for the environment but a reality for real estate investors.

In regards to the house that they want, I think that sometimes you just need to fire a buyer if they can't come down to reality. 

Go with reality.