The reason I ask is at that rent point there is no profit on a sustained hold.   

You will want to make sure you have enough room for your profit and to still make it enticing to an investor.

Additionally, if your goal is to maximize personal financial benefits, consider profit distributions from the property-owning LLC, which may provide tax flexibility depending on your situation.By adhering to FMV, maintaining proper documentation, and structuring the lease agreement carefully, you can optimize tax benefits while staying compliant.This post does not create a CPA-Client relationship.

I think outside of just what area is going to be the most profitable or best investment, you also need to think about where you are going to be happy.

It's stopping me from scaling to a much larger portfolio leveraged versus a smaller paid off portfolio.  

Whether rates drop soon or remain elevated, timing the market correctly can be the key to securing profitable deals.For those waiting on rate relief, now is the time to identify opportunities before competition increases.

Yearly increasing costs will, in time, eat up any profit they have per unit.

Consult a CPA or real estate attorney to understand tax implications, build a reserve fund for unexpected costs, and research local regulations to ensure a smooth and profitable transition into rental property ownership.Good luck!

My first question would be is this profitable?

Most larger communities will have a Homebuilders Association, i would start networking to find a builder that can finance the construction.