Subdivisions of build to sell are favorable to local SFR landlords because more rooftops means more retail and dining, which makes a more desirable rental area. 

Be sure that you are purchasing in a desirable location though.

This would satisfy your retirement desire. 

@Reeti PeshawariaIf it's a desirable place to be you can STR within structure of the current rules.

While I haven't remodeled the main house, it's situated in a highly desirable neighborhood.

This is a very early stage investigation to see what my options are, the ROI would depend greatly on the strategy that would be used moving forward, which is something that is very open to possibilities at this point and I have flexibility depending on the needs and desires of a potential partner.  

My interest in real estate came from a desire to have stability and time/financial freedom.

So the real answer is do what's comfortable for you and what makes sense based on your own financial position, your age, your desired outcome, and your local market.

In addition lower rents will decrease the value of a property, not necessarily its appraised value, because no buyer will desire to pay retail for properties with reduced cash flow.

@Bob DoleWell, it seems like you have a very good grasp of the situation and the desired outcomes you are looking for.