But if I let my inner stories distract me from keeping my "foot on the accelerator" finding motivated sellers the next guy will buy that delapilated property.

I have a child on the way so it will be my wife and I plus the baby when we move.

Average value per square foot for the neighborhood?

its very hot.. but profit margins all in all are thin when taken as a % of the gross project amount.But houses also sell in 1 to 5 days.. if they are in the major metro area.We have a huge play going on now .. of tear down and build McMansions.. not really McMansions but little 1920 bungaloos are taken down and two story period homes are built ( PDX 4 square) being popular.. and on corner lots you can do a common wall and get 5k sq ft in two homes on a 4k foot lot.. and the homes will sell for depending on which blocks 450 to 750 each.

It is like talking to an ill tempered child with a tantrum.

I'm in Colorado too and I get all my properties tested and here's the company I use...http://www.forensic-applications.com/I had a 1600 square foot townhouse tested for $425 (came back clean) I had a 1200 square foot townhouse tested for $550 (required overnight - rush processing) after I heard neighbor rumors as well.  

Right now I'm told that new construction costs between $150 and $200 per square foot (depending on who you ask and what is being built).

Most profits are made on the buying side and you're already starting off on the wrong foot there.The only way I can see this working is if you refinance it, hold it and rent it out, but only if there is significant appreciation for this type of house in this market.  

They fail to see why the pre conversion value would be significantly less per square foot than our currently rented property,....Communication with them is awful, both for me and for my realtor, so if you have any other options I advise you use them!

I find it doesn't last long and needs to be replaced often .Carpet, in by the foot, out by the lb!