Is preconstruction in Seymour, TN a good investment?

I attended a real estate expo in San Francisco where a real estate agent was trying to sell preconstruction property in Seymour, TN. I got the packet in the mail and read that I have the option to sell within 6-12 months after construction, rent the property, or lease it to a tenant. If I lease the home, i'll lose equity because the tenant would pay less rent than I would owe on the mortgage. The interest rate is approx. 7.5%.
I could rent it, but it's the question about the remainder of the money owed on that mortgage. However, If i sell the home after construction within 6-12 months, the agent says I'll make a profit. He said that the first home sold, the seller made $35,000. Does this sound like a scam?

Summary Illustration: typical lot(varies)=$42,000; typical model price=$149,000; net home price=$191,000; closing cost on loan=$9,000; construction interest=$6,000. Therefore: Total costs to build=$206,000. Total loan amount=$204,300 (90% LTV). Appraisal=$227,000. Total out of pocket=$1,000-$1,700.

There is a ton of these type of deals going up in Tennessee - but I say don't buy what you don't know - So you're a landlord, and how will you find tenants, and when the water pipe breaks in the middle of the night and you get called, who will you have fix it?

Without detailed information, how do you know what a fair price is? How much did seller number 1 pay for his property, or is he a Judas goat (to lead the sheep to slaughter)?

I think there is insufficient information to know whether this is a good investment - but my vote is recycle the packet.