I have a big chunk of cash saved that I need to put to use, but I'm having trouble determining the value of a new build vs a more traditional deal just buying a rental and rehabbing.I've been presented with an opportunity from a builder to build a new duplex in an area which can be used as short-term or long-term rentals in Knoxville, TN.The builder is a rare combination of fast, cheap, AND quality, and has written a "cost-not-to-exceed" clause into the building, so it's an extremely competitive build cost (details below).The deal would cash flow very nicely, but it would force me to leave a chunk of cash into the property.Here are the numbers:duplex: each unit 2:2, 900 sq ftTotal cost of land, 1.2 acres (This is already leveled, excavated, and prepped for building): $80kMaximum build cost: $252kTotal cost: $332kCash in: $67,000ARV: $350kApprox cash flow: $800-1,100So, again, how does this compare to a typical buy/rehab?

This process of getting a Rental License is already excruciating; you have to attend a 4hr class and are forced to hire a property manager if you live more than 30 miles away...

As a result, people are forced to seek out cheaper housing options that are still within their budget.

The last bank I worked with forced me to buy multiple properties at the same time in order to work the deal.  

I was forced to look at creative options myself since the capital needs were so high.

Others are just sucking it up.I'm happy I'm forced to be on the sidelines till tax situation is clear for me, bI think it'll do me well just by seeing what's going to happen here.

The market is feeling the heavy hand of the Fed’s rate hikes but the vast majority of mortgages in place are not forcing owners to liquidate en mass.

A HH can also involve opportunities to force appreciation and/or rent (e.g.; by adding an extra bedroom in a previously under-utilized space).

You put in forced appreciation but you gained no change in equity? 

What you are proposing, is more of an immediate "forced equity" situation, where the investor does the rehab, hoping to benefit from an immediate increase in appreciation/equity, as a result of the rehab.