I would like to at  look at opportunities in the small tier commercial (under 1 million dollar) category to see what's out there.

You want investors who can help you and telling you where to invest when you are allegedly open to the whole country is impossible.Make a list of places you have a competitive advantage (where you've lived, where your friends and family live, and places you have been that you loved) and then use a list from Dave Meyer or someone else who crunches the data and see where there is overlap.

There are some solid advantages here: new construction typically means lower maintenance costs upfront, modern amenities that attract quality tenants, and potentially higher rental income.

This would increase the property’s value to about $608,000, and you could look at an 80% loan-to-value refinance, which should give you enough to cover most, if not all, of the remaining balance.This structure allows you to minimize upfront costs and take advantage of property appreciation over time.

When it comes to reporting this income, beyond the importance of being truthful on taxes, a few key questions arise:Are there any advantages to reporting higher rental income on your 1040?

This is a great place to learn and to connect with people so take advantage of all the great resources.

This is more common for commercial (5+ units, often lenders in this category want the owner/operator to have experience self managing or hire professional management), and not very common 4 units and under, IME.  

Actually, it is to my advantage to simplify, making ownership of my assets easier to file at tax time.  

But they certainly fall in the "who you know" category.  

This is a great place to learn and to connect with people so take advantage of all the great resources.