The fear of early payoff and loss is great. 

They have policies and procedures in place that will reduce losses.

All speculators who purchase pre construction condos/homes from developer to assign or flip are basically screwed.. only the lucky ones will make a profit or breakeven but most will take a loss or lose the whole deposit.

@Nate SanowCapital gains should not be a big issue since it's also my primary, besides I will also have some capital losses to cover the gains on the rental units.

I find them in general to be good/conservative in their number so I am happy to provide it to the owner as it allows me the opportunity to under promise and over perform.It is important however not to just plug the address into the rentalizer and go, you need to analyze the comps below and weight the comps most similar to the subject property.Hope that helps!

A miscalculation of price or budget, or failure to secure a renter at the right time and price, can result in big monetary losses.

@Dilini SundaramI'm sad (but no longer surprised) that two days and a dozen comments later, not a single person brought up the issue that we should start with: are you even in a position to offset your income with RE losses? 

Over time, this compounds and leads to “loss-to-lease”.Rent premiums = the additional rent increases you’d be able to get with a significant transformation of the unit / property.

Not all investors want huge losses in year 1.  

It feels like I might be punching above my weight here, and taking on too much risk.