For instance if I am listing I have an agreement with the seller.

There are NO meets and bounds in most instances were most of these folks will be buying existing homes.and yes you can have small little spats but that's all they are.. it simply is not done here . 

I have an extensive list of non-performing notes and REOs that I am having trouble moving.

For purchase and sale use FL FARBAR....most common and extensive.

Perhaps you can negotiate with your buyer for an extension or early possession while you're waiting for title to clear. 

and that tons of paperwork was left unfinished and my request for a 10 day extension was never put in (to cover me going on the trip) so when I came back I had a whole ton of work to do as well as a bunch of dates that passed because I didn't get my extension...The mentor of the realtor who found me the deal (that's why I decided to go with him instead of my usual realtor) said he would continue from where we left off and clean up the mess that was left behind so I had to explain to him everything that happened with this house so far and where I thought we were at and he had to tell me where we were really at.

We'd be working with a builder who has his own crew so we're not going to be the General in this instance. 

That people who want to be in downtown but either cannot afford it or cannot find somewhere to rent are coming into this area and that they don't want to go any further than West Blue Ridge.Can anyone with extensive knowledge either from living in the area or investing in the area offer their opinion and maybe even some resources of further information.

In some instances you have to reduce the LTV to make the deal work.  

I did a curb appeal mockup for you (but I think it's more than curb appeal), If you have for instance a proper class C apartment complex competing with you, the layout will be more home-like vs. this house cut into two parts with less than desirable floor plans.People don't pay Cadillac prices for a Pinto, but a fixed up Pinto will bring more than one with dents in it.On the plus side, it's clean, the neighborhood looks great, I like the backyard as a feature, I like the garage as a feature, I like the "STORM Cellar" as a feature re Tornadoes which apartments do not have, and it looks like at least one unit is ready for washer and dryer inside the unit, which apartments sometimes do not have.You may have to do more to the interior to close renters on the place if you can't do it as is (spend $$$).Here's a curb appeal mockup, I just chose a paint color at random, but white might work better in the neighborhood.I doubt just curb appeal will make it the most desirable rental in the area though, but it's some food for thought.I like this house, it has potential.Right click open in a new tab makes it bigger.