Buying a SFH rental where new condos are springing up - good or bad?

[Meghan Helbick]

Finally, my husband and I are ready to buy our first property EVER in South Florida, Delray Beach to be exact.  We will actually be living in the property for a few years with the goal to eventually move and keep it as a rental.

The market is very hot right now, and the area we are buying is selling like crazy because the whole area is undergoing a ton of redevelopment and growth. My concern is that there are plans for several new condo buildings in the same area, and I wonder if that will only create tough competition when renting a SFH. On the other hand, the growth and demand for the area should go up, so I'm not sure whether it will be good for our future rental or not. Anyone else experience this before?