I have the option to buy a 1,300-sqft 3-bed, 1.5-bath house in South End neighborhood of Stamford, CT, from a family member before it goes on the market.

It’s probably not that you’re “small potatoes” to your PM, but more a reflection of the nature of the market itself—low rents, properties with higher maintenance needs, and tenant issues.These factors make properties in these neighborhoods more difficult to manage and generally less profitable for property managers.

If you're still interested, take a trip to the site once ground has been broken.The flashy marketing material for a new development is great, but don't put your money at risk for something that's likely to vaporize.

I am leaning on local first for my next investment, but not ruling out an out-of-market opportunity. 

@Jonathan LudizacaIt really depends on the market.

There are a lot of market-specific issues you'll have to grapple with and also, there are plenty of landmines in MFR on its own in CT that you'll have to be ready for, in addition to the nuances and complexities of developing something like this.

At what point do you start marketing?

Study the market.

Also, if you have a below market interest note, if you wanted to sell that note for any reason in the future for liquidity you would be affecting the value of that note negatively.

He is great with investors and can find deals that cash flow much easier, including some off market stuff.