Writing it in the perspective of 3rd person limited and focusing on the neighbor created a sense of distance and an overall picture of the behind the scenes. Obviously the neighbor played a big role in the story, being the one who called the police, and eventually leading to the main character getting arrested. Writing from 3rd person limited shows the reader what concerns the neighbor had and what lead up to him calling up the police.
3rd person limited rewrite:
It was 2:36am, Mr. Wilson was sleeping snuggly inside his warm and cozy cotton sheets. He was not moving at all, all except for his chest, slowly exhaling and inhaling, his chest growing bigger and smaller. As he inhaled all the air a loud choppy snore breathed through his small nostrils, and as he exhaled his chest slowly deflated like a balloon.
Suddenly some mumbling was heard from a house next door, obviously it wasn’t loud enough to wake Mr. Wilson from his deep dreams. But he twitched and turned around, he flipped all over his bed, the mumbling from the old man living next door seems to have affected Mr. Wilson from his sleep.
However, as time flew by Mr. Wilson seems to have stopped moving, he maintained his frozen state of peace and quiet sleep like nothing ever happened. But the silence from the old man next door did not remain very long, suddenly, out of nowhere a weak, fragile scream was heard next door! Mr. Wilson instantly jumped out of his bed! He looked around quickly. His face was crunched up like a ball like he just saw a ghost, his heart was beating fast. The scream wasn’t a very long scream, it remained a few seconds until it died out. Mr. Wilson picked up his home phone sitting right on his bedside drawer, and dialed the police.
Mr. Wilson, still being in a state of shock, told the police all about the scream heard next door, he told them about the old man as Mr. Wilson looked directly out of his window, staring straight at the old man’s house.