Hey everyone! Quick background on myself - I do not yet have experience renting homes, though I am looking for this to be my first step into eventually being "Set for Life".
I am a new home salesperson in a growing city near Carmel, IN. The city's median home price is $270k, with the median rent being $1,700 - however, the area I sell in is all new construction, and single family homes very rarely sell for under $300k, and 3 bed 2 bath ranch homes rent around $1,800. I have been put in charge of a brand new community that is shaping out to be a really big project. My company was approved by the city to build the only dwellings in the city that start under $200k (townhomes not mentioned below). The area is expected to appreciate at around 2% next year. Here is a quick breakdown of what the products will be:
Paired villas (like a duplex, but each side sold separately): will end up around $200k with upgrades, 3 bed 2 bath
Villas (just not connected to each other - basically a ranch home, but yardwork is included in the HOA): will end up around $280k, 3 bed 2 bath
Single family homes: will end up around $300k for a 3 bed 2 bath ranch
The community will have a pool, clubhouse, dog parks, walking paths, multiple ponds, really decked out. The HOA fees for paired villas and villas will be approximately $100 more per month for the yardwork at around $150 per month.
Since I get an employee discount, I am looking at buying one of the above, living in it for a year or so, and then renting it out until I sell it when the time is right. I have heard that connected homes are tougher to rent out, but I am very drawn to the paired villa, as the price ends up SIGNIFICANTLY lower than a stand-alone villa, despite being the same size and bedroom count, which makes me think my margin would be at its highest with a paired villa.
Does my logic check out? What are some things I need to consider when deciding between the options above? Thank you so much in advance for your input!
