Need reassurance about mentally unstable neighbor
So, I mostly need to just talk about this because I'm worried if I tell my family they will overreact and say we need to move...If that is the right course of action, fine, but I want to hear it from a neutral third party. I need to get it off my chest.
Basically I have a neighbor who is a vet with PTSD recovering from serious substance abuse (heroin). At first I thought he was just a nice old man who wanted someone to talk to. He always had the best cared for yard in the neighborhood and seemed polite enough. But after a few conversations it became clear that he wasn't through coping with his issues and he definitely talks like someone who is mentally ill. He has told me ALL about his problems. I'm pretty sure that the housing he is in is cared for by the city, and that's why it's so nice.
I started avoiding his house, partly because I don't want to talk to him, and partly because he has a fear-aggressive ankle-biter dog that runs free and makes my dog very unhappy. Today he confronted me about avoiding him and I said it was because I didn't want my dog to get too close to his dog because she is still in training. He really doesn't seem to understand this even though I've told him multiple times in the past that my dog can't handle being around his dog. He continues to approach us on the street and once he threw his dog's toy in front of my dog, I think on purpose.
Anyway, after I give my explanation he then starts telling this rambling, meandering story about this young woman he knew who was avoiding him, and when he finally got her to admit that the reason was because he made her uncomfortable, he was going to blow up her car. But his therapist talked him out of it. He said it would have been so easy to blow up her car, but he wanted karma to deal with her instead for "ruining his good name."
The whole conversation I really couldn't get a word in edgewise and I just left things at "have a nice day." My current plan is just to avoid his house and change my walking route because he seems like a total nutter. Part of me is a little afraid now because my cousin was murdered by a mentally ill man who she only talked to several times. Afterwards he told all of these crazy stories about being in a relationship with her that never really happened.