I do see many investors incorporating a similar strategy with new construction builds, heavy rehabs, or in instances where the property was bought far below market value (usually a wholesale type transaction).

For example, you can buy 5 new construction homes at great price points in my market that would be perfect for this strategy.

Perfect - do your best to make the floors as even as new construction.

PG's are worthless those that have PGs that are worth anything dont need gap funding they have the cash.this is a play for folks you know well .. not for internet facebook BP etc.. people that do this do it because they know you like you trust you and think your a good operator.Public has to many other choices that are much safer bet.. its not always about ROI with those with money..

You can just answer it without the jazz, and I bet you know a few places right off top of head where people WANT to live, right. 

Is this just someone betting big on inflation?  

This is still under construction and the pictures are obviously rough edits but you can see why this template is so effective.

Other companies people use are SNSC, FCI, Landhome, Homekey and others.That would be your best bet.

I bet that you can pay off this debt in 1 year or much less.

If someone is willing to pay you $500k / year, I'd bet that you're a pretty high value / hard working person.