To say, will reducing regulatory overhead really drive down the cost of new construction so much that private owners will be able to make adequate returns while charging affordable rents?

So naturally the market you are most familiar with will give you the best chance at success.

I find the best mentors in any field are found naturally.

Obviously my income isn't great, probably not adequate to float two mortgages, so conventional financing might not be my best option.

So in the end, managing yourself will likely only save you about 15% and likely take you much longer than a quality GC.With full disclosure, I am a GC so a natural reaction would be that the above is bias and typically, you would be correct but I am ALSO an investor/developer and have hired many gc's and subs over my 15+ years so I also have seen it from the client's side too and can attest to the fact that managing a project without experience will cost you more in time, money, headaches too. 

I wouldn't think that a 100 gallon unit would be able to adequately service 4 units, much less 32.  

Is it because they feel they have the upper hand due to my strict timeline or just because that is their nature?

Indeed, Salem has definitely been quite a popular pick here given its easier entry point and the nature of its location (I've also chosen it myself for these reasons a couple years back), but also in general the whole stretch that you mentioned has definitely been benefitting from the northward migration from more metropolitan centres like Boston.

Given the nature of what the neighbor reported, they might have done this up to 3 times (at different times of the day) to catch the tenant violation.

Although expensive in the metro areas, it has some of the most stunning nature I have ever experienced.