Maybe even a B depending on how you're feeling that day.

It depends on what you want to invest in.

This is a physical asset, not paper, and it's providing consistent income.Albeit for your not understanding tax laws and depreciation, I'm wondering why there's a question as to what you should keep.You understand capital gains, but I'm pretty sure you're not familiar with depreciation and loan paydown.

Quote from @Paul Lucenti: It depends what you're looking for.

When it comes to furniture/design it depends.

Big things is be realistic on timing and maybe provide a mover and or storage unit deposit as they may not be able to figure that part out on their own.

All that to say, I'm not sure when they will want to cash in and sell the lot due to the appreciation the subdivision has provided.

I agree with many of @Alan Asriants' points, especially when considering OOS Sec. 8 investing.A lower price point or smaller investment doesn't always mean low risk.House-hacking locally could be a better transition depending on your goals and situation.

I don't know that any of this would affect a new appraisal, but there may be some comments by the appraiser, which may or may not hurt you depending on why you want the appraisal in the first place. 

HELOCs on rentals are rare, and depends on where you are located.