I figured just like anything else there could be hidden fees.

Tons of great tips and gems in this thread.

My general plan would be to utilize a 5, 7 or 10yr ARM for the temporary lower interest rate and then sell/1031 or refi and lock in a lower fixed rate based on market conditions at that time.My questions are, does this seem like a sound strategy and, while I have a general understanding of how the 3/5/7/10yr ARMs work, are there major or hidden drawbacks to be concerned about when financing with an ARM?

Don't get me wrong; there are plenty of issues/problems/quirks that old houses have that new houses don't, and an old house can obviously have hidden problems and big repair/maintenance bills too--which is why thorough due diligence is fundamental to REI...but, the point is: a brand new house is not a foolproof solution to repairs/maintenance headaches (and in some cases, a brand new house can be a much bigger gamble than an older house).This is a particularly important lesson for inexperienced investors, who tend to be the most prone to "shiny object syndrome" (the tendency to let nice aesthetics distract from real, underlying issues).

He likely spent a bunch of money on that foundation and is waiting on a rainy day to complete the project.Can it be hidden by a row of hedges or a small fence or something? 

I will negotiate a contract and take you through closing for 6 percent unless there are comprehensive and unplanned negotiations regarding; major repairs which are unknown at this time, hidden title/easement complications, water and sewer repairs or negotiations etc. in the case of extensive negotiations and or repairs, the commission will escalate to 8 percent.

This was found on the MLS - by knowing our market in great detail - I could tell this was an opportunity hidden in plain sight.

With proper due-diligence and market insights we found a gem in the rough.

Updated, plumbing fixtures, roof, new water heater, large private yard, and driveway complete this rare gem.

Updated, plumbing fixtures, roof, new water heater, large private yard, and driveway complete this rare gem.