It is difficult for a layperson to judge the danger of another individual or situation. Your neighbor may be dangerous or he may not be. It is important to correctly determine the level of danger so that you may protect yourself and your family.
The world is a dangerous place and there is no way to eliminate the danger. People are shot randomly while getting gas, walking down the street, in their homes, and even in their places of worship. No one would’ve thought that attending a public meeting with their Congresswoman in a shopping center or going to the movies to watch a Batman film were dangerous activities, but they were. Situations that appear not to be dangerous sometimes are. That is the world we live in.
Research shows that individuals with schizophrenia generally do not pose a danger to others except in rare cases and when certain conditions are present, despite the general public believing otherwise. Individuals with schizophrenia are much more likely to do harm to themselves or to be victims of violence than they are to be perpetrators of violence.
Your psychotic next-door neighbor may be no more dangerous than another neighbor who is not psychotic but who takes a particular combination of drugs and then engages in horrific violence. Likewise, your psychotic next-door neighbor may be no more dangerous than an individual who recently lost his job, is angry, suicidal, and wants to seek revenge on his employer and coworkers.
If you believe that your neighbor is a danger to your family, then precautions must be taken to keep your children away from him. If that is not enough and this problem continues to concern you, then even if it means a great financial loss, you must move to a safer neighborhood. Those are ultimately your only options. Please take care.