You really run the risk of bad construction biting you.

New construction has a very different risk profile from buying existing properties and fixing them up. 

As for seeing more DOS invoked I dont work directly with those doing sub too in my day to day.. we are selling brand new construction and doing JV deals with flippers there is no debt to take sub to and sales are all cash to us.

I do some construction myself and have an extensive team of framers/ electricians/ plumbers / HVAC ect. 

The company is fully vertically integrated; they own a design shop, they have construction crews, they have accountants, etc.

This could include keeping track of the construction holdback.  

I would start by talking to a lender who deals with construction loans.

I have worked my entire career in construction and last 2 years performing entitlements, permitting, and construction for industrial developments along the Wasatch.

What I did find is that as a builder in eastern tennessee, I could build STR cabins for less than 70% LTV so that I could effectively BRRR my way into growth without coming out of pocket for a down payment.Now it does take a lot more cash to do because as a builder I have to front a lot of money at times (land, permits, each stage of construction while I'm waiting on the draw). 

Your insurance is going to be highly variable and I wouldn't use what an agent or the seller tells you as the cost of dwelling policies have increased substantially over the past few years due to rising new construction costs.