Buying Preconstruction in South Florida Pros & Cons

[Bruce Bloom]

I live in South Florida and I'm looking to invest here, but I would like to get some discussion going regarding buying preconstruction properties to hold and use as rental income.  There are some pockets of development happening that are in areas that are up and coming, and the prices are in my price point.  Has anyone bought preconstruction before, had success, or failed that could put some perspective on this? I understand most of the pro's involved in buying preconstruction, but I would like feedback.   (Note: These are phase one developments that have not even started construction yet, so prices are phase 1 prices and it will take about a year to be constructed.  Typically a deposit of 2K is required to reserve the spot, 2K at groundbreaking, and the loan does not kick in until the property is complete)