One thing you may consider with having an investment property built is looking for areas where you can improve on "builder grade" that will make an impact, but not break the bank. 

Performing notes can be good if the returns are there but they are taxed differently than the income from investment-grade property.Both can be considered "passive" although there is no truly passive investment.I always opt for property over paper, and we suggest our client to do the same.Continued success!

What is the grade of properties in this area?  

In some areas of Waterbury they are really your only option.I would say if you are going to make it a section 8 rental go with the 3 BR's, if it is in a better area you will always attract a better grade of tenant by having a 2 BR with a garage. 

I have a good client who has owned a CVS pharmacy NNN lease for more than 12 years and it's been a great investment for them as they live out their retirement years.

3 bedroom and 1.5 bathroom in B grade working class neighborhood. 

Try to find a bank to do a small portfolio commercial grade loan (5 units combined) for an equity out refinance.Pro's: - Potentially the highest loan dollars due to a commercial loan basing the LTV off NOICon's:- Probably the highest interest rate due to small commercial loan (current loan interest on the properties is at 3.25%- 3.5%); difficulty in finding a willing lender; generally non-self amortizing terms meaning I have to refinance in 5 or 10 years; higher closing costs; couples the properties together, makes exit strategies a little more limited2.

I live in northern VA so it'd be long distance and I'd acquire local property management.Can I get your opinion on how you'd grade Lithonia, in terms of A-D class rentals?

It is a slab on grade single level 1,600 square foot home with a two car attached garage.

Perhaps by coming out of this bruised but not broken, that in itself is the true Real Estate Success Story.There have been many discussions about neighborhood grades on this site.