If accepted then you gotta hope your financing doesn't take too long or fall apart altogether, and then you have to pray your contractor does a swell job cause that is about as good as a coin flip, and then you need to make a wish that your exit is one timely and two at the price you suspected.Bottom line is, it is hard to set up a network built with pieces from 3 - 4 different verticals within the industry. 

Look up the Howey Test for a definition of investment contracts.Sounds like a really good deal.

We will NEVER accept a request without previous 5-star reviews again. 

Your options in this case are to:Decline their application.Accept them without references and take the risk, assuming everything else about them is stellar.Require a co-signer.Require an additional security deposit if that is allowed in your specific state.The option many landlords choose is No. 2: Accept them without references, asking for an additional security deposit.

@Nathan Gesner Conducting a quick test.

If so, have them hold the builder to the fire, that is not acceptable for a brand new home and that should be on them to fix that and anything else.

It’s wise to run different stress tests on your budget to see how it handles fluctuating interest rates, higher costs, potentially lower market valuations, or worst-case-scenario acts of God.b.

If you meet this first test, you are a REP...now determine if you can use the benefits of it.2) if you or your spouse meet test 1, THEN you can make an election to combine all your RENTAL activities together for purposes of determining if materially participate in your rental activities.  3) So you met test 1, made the election under #2 - now you see if you materially participate in your rental activities. 

@Joshua Perelli so only a crazy person would accept being a LAIC for an owner self managing. 

Here are the ways you can qualify for material participation per IRS publication 925: https://www.irs.gov/publications/p925#en_US_2023_publink1000...Material participation tests.You materially participated in a trade or business activity for a tax year if you satisfy any of the following tests.1.