If its a total gut, that changes things...but if it's bought right...Rehabbing will likely be your best bet. new builds set the price premium in every zip code I've ever studied. in addition new builds don't take 9 months. we just built a house in 60 days. we wait till permits are approved and shovel ready, investors buy land cash, entitle, contracts, negotiate with financing, place financing when we are ready and break ground. but we build the same over and over and don't go outside our Floorplans  

There are videos, bigger pockets provides a lot of info to study and read before contributing to the reason we should be banned.

I would bet good money that they are paying below market rates.In case you missed it: get rid of them.Spruce the property up, study the market to determine a fair market rate, and find a renter that is willing to pay the market rate, pay the deposit, and abide by your agreement.Not everyone is cut out to be a good landlord.

Study the market.

Study the market.

Then, do an Engineering Based Cost Segregation study and get back some of that invested money back from the IRS (it's 100% free to see how much you could save).

You will have to study the market to figure that out.

As far as the cost segregation study goes - yes, you can absolutely do a cost segregation study on a new build.

As this becomes more and more prevalent in the coming months/year, I think there will be a lot of sponsors that have footnotes on their track record, stating "representative sample" or they will change track record to case studies, and only list their good deals, while sliding some "average" deals that still netted an okay positive return.From the LPs side, of course you should be asking questions about losses, is your track record reflective of EVERY deal you have syndicated or raised money for.  

Study the market.