Built To RENT? This strategy is news to me!

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I've found an investor group that is building dozens of NICE SFR homes that are above average sales price to RENT for years to come!

I've never seen or heard of anyone doing this with SFR. How do they cash flow? Rent is well below 1%. What's the fundamental principles of this strategy?

They have no intention of selling any of them. They are not even for available for Lease Option. They are "New Build Long Term Holds". 

Thanks to whoever can break this strategy down for me! :)

@Cliff T. I struggled with this for months but the only thing I can figure out is they must have had this land for a while and cheap including very low building cost. And has to be a long term play.. Also virtually maintenance free for years to come..