Purchasing a New Build for Rental?

[Ann Wing]

I’m probably going to show my inexperience here, but does it ever make sense to purchase a new build in a master planned community for an investment? I’m in a very competitive market (Denver area) and have the funds to purchase a second rental property when the right one comes along. However, properties are getting snapped up, quick. (Could share lots of stories to illustrate this.) We really like our area and it is very desirable for young families moving out of the city. A national builder is developing a huge area with various types of homes. I’m curious if it ever makes sense to buy a builder home in a new development. I’m sure there’s a term for what these are called, but I am very new and still learning all of the lingo. 

I considered buying one in a nearby area a few years ago for my first home, but quickly learned there are a lot of additional costs for things that would already come with an existing home, such as air conditioner, blinds, etc. It turned me off and I bought an existing home instead. I’m guessing these homes are not ideal to add to a portfolio due to the build time, potential delays, and all of the additional costs, but curious to hear from others.