New Construction Single Family Rental Communities

[Rylan Lacey]

Hello Biggerpockets,

I’m in the process of buying a parcel in south Phoenix for 15 single family homes that I plan on building and selling as a rental community vs building and selling them as individual specs.

Almost my entire career I’ve been building ground up new construction houses and condos as specs, along with some ground up multifamily rental communities. 

However, as I’m seeing more and more of a demand and appreciation for rentals, I’ve noticed there has been a big boom of single family rental communities in the Phoenix area. I was wondering if anyone has an idea on how cap rates compare buying single family communities vs multifamily communities, and if investors are more interested in getting individual 30 year fixed loans or one commercial loan for the single family communities.

Any insight into this market would be greatly appreciated!