He pays association fees and those go towards common area/building repairs.

@Khaled SeirafiPhoenix is a strong market for multifamily investing due to population growth, job expansion, and landlord-friendly laws.

The market you are looking for should be one with strong population and job growth. 

You have NO leverage, no matter what he builds or does not build, except for the developer saving some money in legal fees and cutting down on mesne profits damages.

Quote from @Greg Gallucci: For the most part I suggest not buying new builds to rent for a number of reasons.#1.

I’m looking to learn more about real estate financing to build and cash flow long term or short term rental properties.

Building a 4,000-square-foot, three-story duplex with a 1,000-square-foot ADU could cost about $1.83 million, including construction and permits (excluding land).

But others may use it as a way to allow investors to "taste" their offerings before writing bigger checks, or playing the game like Nike (sponsor the college teams to build brand loyalty when the player goes pro).  

Building a cash buyer list is the easy part, in my opinion.

I bought a DR Horton new build with a next gen suite in 2023 up by aliante.