And he seems very genuine.

You fail to recognize that technology has resulted in more productive workers.

If you want to buy here, buy to be a long term buy and hold investor who believes in the fundamentals of a nice friendly boring reliable midwestern city, but recognize now this is a boom town in the sense of the modern boom.  

And I believe REI Nation recognized this some years back and that's why they focus on Quality assets that might have a little less COC out of the gate but have long term viability and hopefully substantial appreciation over time.. not to mention best in class customer service Hands down.  

He is genuinely asking what is the best response.  

That is what I did with the last one and found their association to be a genuine PITA. 

Also how do you recognize a deal, you cant ,,,, just yet.? 

His staff was also friendly and seemed to genuinely care.

I'm reluctant to involve authorities, fearing that it might create problems with my neighbors, but I also recognize the importance of addressing such issues.

There was a recent On the Market podcast where they were talking about under recognized markets where the 1% rule is still achievable.