Hello BiggerPockets forum,

I'm a first time poster and investor and I came a cross a new development in phase I of their development and had a few questions:

Do new developments make sense for buy and hold investment properties generally?

I know that basing a deal of the property value of going up is not the smartest way to analyze the deal but this house(s) have a neighboring community that list well above 300,000 with fantastic amenities. This new construction deal has even better amenities which list in the mid 200,000, the houses may not be in equivalent in grandeur, but aren't ugly by any means, what is the the likelihood that the value will be equivalent to at minimum the lower end of that market? I should also mention that there is a neighboring community that was hit hard with the down turn of 2007 and their HOA struggled leaving a lot of houses in the low 200,000 range, but the amenities aren't really a comparison.

If I buy one of the SFR at preconstruction pricing (lets say $250,000 and I put 10%), by the time it's time to fund the purchase and the price of newer preconstructions go up($260,000), does the value of my property get evaluated at the 250,000 price range or 260,000?

Meaning if I put the 10% down at 250,000, which would be 25,000 with LTV being 90% (or 225000) does property now get evaluated at 260,000 with equity being 35,000 leaving me at 13.4% LTV?

What concerns should I have with the HOA?

Since it's a new construction in phase I how difficult is it to rent out as the landscape looks pretty much like a construction site. Keep in mind that the amenities are higher(est) quality.

What are the pitfalls to look out for?

Thank you sincerely,

Tetsuo