It is a very secure investment, and it is almost impossible to lose money on this deal.

I can see the OP giving this a shot.. but it is risky he could end up making a few bucks and getting experience might just break even or he could take a loss.. that margin is very thin in markets that are not selling as soon as you get CO  thats been one reason we have been profitable very few homes have been carried past CO so financing cost are at a minimum.. you hold a spec home 6 months past Co and every month your losing money you will not recover.

in the meantime you lose your EM and they ghost you.. 

Its only good for tax purposes if its still a wise investments and you do not lose money on it.

In Miami, we all know how people use rented cars, boats and houses to give themselves credibility.  5k for me is pocket change but I never like to spend money on a losing investment. 

In my experience that makes this a low risk deal as there are very few ways to lose money on it.

Ideally they did not pay over retail because if they did they could easily lose the money they put into the property if the loan gets called.  

I appreciate your caution but I am going to continue what is working for me, if It stops working I only lose a bit of money the rest of my money is in the SMP and it wont be taken out to fund more trading endeveurs.

I see landlords lose thousands, even tens of thousands, making rookie mistakes that they could have avoided with a little education up front.Once the first property is under contract, start again for the second.

Hotels lose money with no guests.