Sub-to laws vary from state to state, so definitely make sure any legal documents were prepared/reviewed by a local lawyer familiar with this transaction type.As far as whether someone was taken advantage of...

We are in the process of starting a new construction with a big name local builder in the area.

Especially if you are not local, I'd look into all of the following:1.

@Saurabh Mahadik where are you located locally, out-state or OOS?

Trying to stay local but may have to consider out-of-state which I want to avoid if possible when starting out.

Things like learning my local market,becoming familiar with different zip codes, not having to pay commission fees, building more relationships among other various things.   

You'll need to schedule an inspection with the local public housing authority (PHA) to verify compliance.Follow fair housing laws: As with any rental, you must follow all federal, state, and local fair housing laws.

I work on a local team that provides free educational classes on investing and I am happy to help you with any local connections I have that may be helpful to you in your journey! 

Best to have a local realtor to help you out.

Look for local REI groups.