Build to Rent- BTR

[Chase Calhoun]

Just wrapped up a build-to-rent project on Wilson Road, and I’m excited to share how it turned out! We built two homes side by side on infill lots with a lot value of $20k each and hard construction costs of $196k (builder’s fee not included). Both homes are now rented on two-year leases at $2,175/month. We sold one for $257k in cash and are holding the other one as a rental.

I’m curious about others’ thoughts on build-to-rent (BTR) projects, especially on infill lots. Personally, I find BTRs to be more predictable with fewer ongoing maintenance issues, and they tend to attract high-quality tenants. On the flip side, the margins aren’t quite as high as with rehab projects. Has anyone else had similar experiences with BTRs? Would love to hear any insights!

[Jonathan Greene]

I think build to rent is a great option if you can get cheap enough land to make it worth it. Where I am in New Jersey, the numbers wouldn't work out at all, but those numbers are good on your sale and rent for the build cost, especially since they should appreciate there in Little Rock steadily. The exterior and interior look nice for the price.

Look up Jim Sheils. His whole business is build to rent.