I installed the server and client (with --mkhomedir) without issues.
I created a user and tried to ssh and got this error creating directory

ssh user1@ipaclient1.int.example.com 
Password: 

Could not chdir to home directory /home/user1: Permission denied
-sh: /home/user1/.profile: Permission denied
-sh-4.2$

Any idea what the problem could be here?