To the other experienced investors out there am I analyzing this correctly?

I think I should correct myself and say that builders are certainly not the only ones to reap profits from there. 

@Chris Rendall couple comments,@Wayne Brooks is correct if it was a Homeowners policy now being transfer to an LLC and used as a rental. 

Not saying your kid is or is not on the spectrum, but just food for thought in how you approach it.If they are on the spectrum, I would highly recommend making a concerted effort to go to open houses so he's constantly looking forward to something on the RE agenda.

There are a ton of qualified broker and lenders out there that can offer this product but be sure to receive the proper education when iyb comes to structuring the deal correctly.

Beyond that if I am understanding your post correctly, you are in a market where the settled price is 97.9% of the list price.

I’m probably not searching correctly.  

Correct me if I am wrong, investing in Dubai's real estate is better than USA's real estate.

Even if they are locked in does not mean anything they can change them anytime they want these lenders are not regulated like Owner occ lenders thats the bottom line.. it does affect their crediblity i suppose and risk of them getting trashed on SM  but its their money thier rules.You're correct.

Instead of a penalty system, perhaps a warning system could be more effective, giving members a chance to correct their behavior before being fined or banned.