My family and I are looking for a primary residence with the plan to rent it out after hopefully 5-6 years. The house we are considering is a new build 3bd/2.5ba in Lochbuie/Brighton Colorado which is a growing area with decent rent growth 4.8% MoM currently we think we could get $3,600/mo. if we finish the basement ourselves idk $30K? estimated PITI is $3,900. We are choosing new build because A) our family 4 has a certain size demand B) the price-quality ratio doesn't seem to make sense when considering a preexisting home C) with interest rates being at near 8% with preexisting homes, builders are offering 5.99% interest rates and the exact home we are looking at is about $75K discounted because it's a spec home and the builder doesn't want to pay taxes on it.
So, live in it for 5-6 years hopefully rent it out with a fully finished basement for potentially $4,200 in 5-6 years. No STRs according to the HOA.
looking at this from an investor/family man lens what pitfalls am I missing? I don't know how to tell if finishing the basement is worth it? personally I want to add 1 bed and 1 full bath and make a large, finished gym. but should I add another bedroom and have no gym? or don't even worry about renting it out? What would a REAL investor consider in this situation?
