For the right people with the right perspective, it could be a great way to diversify your investment and enhance your quality of life. 

Also, I wanted to convey that the type of investor I describe should on;y accept a quality tenant well above what’s typically considered acceptable in the industry.  

I just wonder about the quality of the new construction itself and the quality of contractors being used.   

-------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

As you already know, the quality of the investor agent will speed up your learning curve, and save you money, time, and headaches. 

As far as benefit to the seller goes, @Matthew Paul I think you are probably right on the money and regardless of whether they would have preferred to stay in this house rather than move, it is likely providing them some excellent cash flow; and I'd be hard-pressed to come up with a deal that serves both parties better than the current situation. 

Completely agree with you on this; I'm not making any claims to the quality of these lenders here.

@Christopher Leet, I can recommend an excellent realtor who works with investors and is an investor. 

Some of the materials we choose and asked him to pick up (such as flooring) he replaced with low quality materials, I assume to keep more of our money for himself. 

Like @Pat Aboukhaled already mentioned, he’s extremely responsive and has excellent market knowledge.