Here are some of the pros and cons that I see:Pros:Property management costs would be lower over the life of ownership due to proximity of homes in portfolio, low maintenance flooring, siding, etc.You could build them with more robust systems(HVAC, plumbing, etc) knowing they would always house rentersYour portfolio would be concentrated as opposed to spread all over a geographical areaYour exit strategy would be super attractive if you were to sell as a packageQuicker than purchasing and potentially rehabbing an older property, and accumulating them one by oneYou could sell a percentage of them to recoup a portion of your investment, and rent the rest, which should put you with solid equity from the gateCons:Entry costs and length of time from start to first months rental income for constructionFunding the construction, or finding the right lender to fund such a property/developmentKnowing the correct price point of the finished product, or what the community is lackingLocal zoning or possibly being prohibited to build SFH to rentHigher construction costs vs. multifamily(apartments or townhomes)I know there are many other strategies out there, but as one wanting to accumulate a nice rental portfolio, this seems to be a solid approach.

Hi Marcin,Out of state investing is an important component of geographic diversification and syndication can be an ideal way of achieving that from a passive investor perspective.  

@David Friedman Thank you for your explanation.

@Bill Mitchell Thank you for that explanation!

Etc.I'd pick a geographic area that seems stable, familiar, and matches your risk profile (crime rate, tenant pool, job market, etc).  

@Mark Elliot I found your explanation in another of your posts.  

They will also not to exceed between 80-90%LTC up the the MAX ARV.Hard Money Example: ARV = $100,000Purchase Price is: $35,000Cost to Rehab and Stabilize the asset is: $38,000The Max Loan Amount, using 65%ARV, would be: $65,000This example's Loan to Cost (LTC)= Purchase Price+Rehab Costs = $73,000In this scenario, the Lender would lend $65,000 (The MAX % ARV because your LTC exceeded the Max ARV percentage) causing you to come to the table with the remainder of $8,000+closing costs and reserves (as applicable).Hope that helps some and again..this is a very simple explanation

Michael- There is an explanation of the rule here :)http://www.biggerpockets.com/blogs/4454/blog_posts...Thanks!

Also, focus on a niche or one small geographic area to start and become expert in that niche or small geographic area.

Hello Ben,As long as you disclose what's going on and write LOE ( letter of explanation ) as to what you're doing it should be fine.