I company buys 1st lien non-performing notes.

I am an active GC and am currently performing a variety of services to a range of customers.

She's happy for me, and accepts the hours I dedicate to the task, but doesn't second guess any decision I make, because she has no knowledge or interest in the topic.

For our purposes, is it better to buy a property that has historically good rent appreciation, price appreciation and low to little deferred maintenance vs a property that doesn't have the same performance all within a good microeconomic context? 

If you get the note, then go to the owner and request the deed (deed in lieu of foreclosure) and if they balk, see if you can get it performing, or foreclose.

That affects relationships, plus job satisfaction and performance.

After acceptance I got a report of termite inspection and treatment, but there is no evidence of termites where they said they treated them, nor is there a sticker indicating that treatment was performed, but there are active termites in another location. 

I prefer to stay on the safer side of notes and deal with performing notes.  

The Southeast Valley in general is performing extremely well and is definitely a seller's market.

I have my previous home in my rentals and it is by far my worst performing rental.