From what i understand it will need a full gut, new electrical, new plumbing to replace copper pipes missing, new drywall since electrical and plumbing needs replaced, along with probably new flooring throughout, paint, kitchen cabinets, bathroom vanity and tile...

Looked at houses in the area I wanted to buy - over weeks/months to get a general understanding of what made sense3.)

It's great to understand how these work and how to identify them, but I wouldn't say it's a necessity in order to get started.

I understand most of the pro's involved in buying preconstruction, but I would like feedback.   

The entire concept is that by investing differently and into something you understand, you can get better results than by leaving 100% of the savings in a handful of mutual funds.There is a lot of good information here on the forums, as well as several providers of such plans who actively participate.

It seems like he doesn’t completely understand instructions etc.  

I understand what you are trying to do but not time for that yet.

@Basit SiddiqiDo you understand the diff between actual cash value and replacement?

Understand how you are going to manage it.

@Shirley Rozenshteyn I understand, it does seem like an upper scale area.