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I like option two since it has an active diamond. A lot of model railroads have dummy diamonds and this would add some operational variety along with showing off any Wabash power you may have, heck it would be cool to see the Cannonball clatter across the diamond while a hotshot NKP freight waits to head east.
Still wondering if the turntable/engine house are within easy reach.
View from doorway (Attachment Link)