It might be a bit optimistic to be able to raise the price $30k with no improvements.

It needs to be raised 6 feet but it a relatively small house only 1200 sqft.

I am hoping I can make renovations to home to be able to raise the rent but as of right now that's what the rents run for maybe even less.

ARV 320k and the rents can easily be raised to 800-850 a month.  

I made a promise to myself to raise my now 2 year old little boy in a safe and nice home.

These are for start ups that have some value/revenue but in need of capital raising. 

You shouldn't have any issues raising money, if need to, with those kinds of returns. 

So close half the schools, half the stores and you can forget about raising rents and appreciation history.

But based on your reaction I can see where that could raise an eyebrow to someone.

The builder may or may not have had problems but neighbors may have raised heck or collectively made an offer purchasing an interest in specific lots to "protect" the homeowner's property values.A trick of builder developers is to build nicer homes first, then infill latter with cheaper homes allowing the nicer home to influence price, they also add commercial later on as either depresses value of the nicer home built first.