I am a Realtor and real estate investor in Raleigh, NC and I just bought 2 cash flowing properties in the outskirts- it's a new construction homes with builder special financing of 5%.

One agent I know in Raleigh frequently networks with local wholesalers and builders.

Don’t forgot to look at all the ways properties make money: Appreciation (#1 way), equity gain through principle pay down, tax benefits, positive cash flow (never as much of a wealth-builder as appreciation is in good markets).

Or, plan on this being a nest egg builder and growing your equity, living in the home for 2 of the last 5 years and then selling with Section 121 exclusion. 

In working right with the builder I can offer the investors properties that are off market but have incentives that on market properties can't offer.  

"I mistakenly had a rental policy instead of a builder’s risk policy."

Generally it's a mix between (a) spec builders, the type who specialize in doing in-fill lot's (b) investors, as it is a normalized flip strategy (c) owner occupants, especially in high desire neighborhoods, who are a-ok with taking on the project and even some are excited that they get to build a new home in often old neighborhoods. 

As those prices fluctuate, there is a builders somewhere putting his feet up waiting to see a market turn more active because the last thing he wants to do is start paying crews to build houses, that could drop in value while he's halfway through the build process and losing equity halfway into the project.

There thinking some clean-up-fairy comes swooping in with a broom, washes the ashes away and then Bob The Builder n all his friends comes hot on the hells, Bing-Bang-Boom all is rebuilt and were singing kumbayas by Christmas.......Reality is it took about 10 years to rebuild post katrina. 

I just learned that builders risk and liability insurance coverage can cease once a CO is issued for a new build.