Jew vs. Jew: The Housing Fight Tearing Rockland Apart

Is it permissible according to Halacha to establish communal guidelines or enactments that restrict the sale or purchase of homes within a defined radius of the community?
May a Jew purchase property in a predominantly Jewish neighborhood with the intent to rent it out to non-Jews?
Does it matter what type of tenants are placed in the property—for example, individuals of questionable character, multiple families, or undocumented immigrants?
If such tenants are likely to negatively impact the spiritual atmosphere of the neighborhood, is that a legitimate halachic concern that should be weighed?
Can one invoke the principle of kim li in a way that causes harm to others—for instance, to justify behavior that may otherwise be morally questionable?