New Construction Investments? Why and Why not?

[Ryan Planchon]

Since inventory is low, builders have ramped up production to help meet demand.

A lot of Turn Key providers have added new construction to their line up of products.

Some basic things I see:

Pros:

Low Maintenance

Capex is father out

Lower property management fee (About 2% lower from usual advertised rate, maybe because of reason above?)

Cons:

Cash tied up in down payment

Higher price, thus a usually less then a 1% rule. I see 0.8% or lower from what I have looked out.

What else? Am I wrong about items above?