That is a tough situation. I can sympathize as I had a 'difficult' dog that kept me at home for ten years. I boarded him at the vet a few times b/c I didn't have a choice when I had surgery and follow on chemo, etc. But it was hard on both of us.
I didn't read all of the posts here but I did notice 1) the difficult neighbors and 2) you plan to stay within an hour of home. Have you considered leaving the cats overnight and staying at home during the day? Since you don't plan to be that far away, maybe you could do that. I think I'd opt for finding a place with a nice restaurant and good cable tv and just 'camp out' there for a couple of nights, going home in the morning.
I hope your neighbors are renters and will eventually move on . I went through that for two years (I'm in a condo) and it was horrible.