Or is the tax implications of higher valuations cancel the positive effect?

You give up loan features in order to get flexibility.So, if you want to purchase your own primary home - at this stage it sounds like you could only go the "portfolio" route. 

That in and of itself doesn't make it a place to invest but, in that sort of location, the place needs to be beautiful to be investable so you have that to start with.For Wall St, sounds like you'd want to contact (large) private equity funds.

Sounds like you are already familiar with the homebuying process so that's a plus. 

It might not be red-hot, but it is still hot, with the average effective purchase and sale between 30 and 60 days.

Manage the property effectively: Take care of maintenance issues promptly and communicate effectively with your tenants to ensure a smooth rental experience.5.

A $40,000 home may sound cheap where you live but could easily turn into a money pit causing you to lose twice that amount of money if you are not careful.  

It sounds like the passivity of having a new construction rental with low cap ex and hopefully not many repairs would be beneficial in your situation.I am not sure which exact community you are considering but I would definitely make sure whatever builder you are going with is high quality to avoid long term issues. 

It sounds like you got a word-of-mouth acceptance, and your agent should have pushed hard to get the signed contract completed so that the sellers would be in breach of contract by accepting another offer, and you would have grounds for a lawsuit if they did.

. $100k install cost doesn't sound bad too with everything included.