Should I build a New Construction Single Family Rental in NH?

[Kevin Tracy]

All, thanks for taking the time to read this post. I'm trying to evaluate whether to build a new construction single family rental or sell the land. I own a 1/2 lot in NH outright in a desirable 2nd home neighborhood in the lakes region. It's not on the water, but walkable to a beach and part of a HOA with marina (no deeded slip but access to boat ramp). Here are a few points of information:

• Construction prices are high in area ($300+/sf)
• Site can accommodate slab on grade and utilities (water/sewer/electric) are at street
• Targeting 3br/2.5 bath (maybe 1 car garage). Not a big house compared to the area but good quality
• Approved for financing with equity in land as downpayment (would not have to put much down)
• Per area realtor, there is demand for both vacation and long term rentals. I'd prefer it as a vacation rental
• Monthly holding costs would be high (taxes are nuts in NH) 
• Would easily appraise over construction price based on area and current market
• Ideally would hold for 2-3 years

Not sure how I should be looking at this. We own other single family rentals but those were already built and long term rentals. This is our first new build, in a higher priced neighborhood.