Are new construction homes good rental investments for 1st time

[Alissa Rodman]

Are new construction homes a good investment for rental property for a 1st time home buyer? I have the opportunity to buy a new home with a particular builder in the Austin area. It is USDA eligible and the builder will pay closing costs. Essentially, I will have to pay no money down. But, I am a little cautious because I am completely new to home buying, needless to say, investing.   The no money down and no closing cost from my pocket seems too good to be true. What are your thoughts?

[Dave Foster]

@Alissa Rodman, a nifty little twist on this that softens risk if you can pull it off is to buy the model home of the builder if available and do a lease back to them. These were gems in the past.  I'm seeing less now since inventory is flying off the shelves and more builders are finding models not necessary.  

But when it works you get a stable renter through 2-3 years of appreciation, a motivated tenant to keep the place nice, and you can usually get a rehab clause in the purchase agreement/lease where they will rehab to "like new" as they leave.