You are simply talking to the wrong department. 

Maybe I'm wrong?

So please correct me if I'm wrong.

I also built one home on 46 Aiken that was bought by Shep who is on the TV show Southern Charm.. he is the poster child of what is happening .. .but in the rental markets of the mid west these old dynamics are at play and still going the wrong way.. this is why so many get wiped out when they buy super low end properties.http://www.postandcourier.com/article/20141018/PC16/141019444

Don't get me wrong, I love my rentals, but without a PM it does at times feel like more than just passive investing.So which is better for long term wealth building: notes or rentals?

It could be something wrong like drug activity, new company air pollution and etc. 

I wouldn't think most accredited people are interested in making $5k investments at a time, but I could be wrong.  

Don't get me wrong, once the improvements are made to the houses we believe we can get 125,000 for both houses.

or even if you are not in one still and where it went wrong?

For many people, there's a real fear of either "doing it wrong" or "doing it at the wrong time".So many people are looking for THE formula and become overwhelmed because there are many, many, many correct ways of doing it.