Anyone Actively Doing Build-to-Rent (BTR) in Secondary or Tertiary Markets?

[Robert Ellis]

I’ve been looking more seriously at Build-to-Rent (BTR) lately — especially in places where buying existing rentals just doesn’t pencil anymore.

Instead of competing for older duplexes or small multis, I’m seeing potential in just building new rental product — especially in secondary or tertiary markets where land is still cheap and zoning is flexible. Think small subdivisions of single-family or townhomes, purpose-built as rentals.

I’m curious if anyone here is actually doing this on the ground:

• Are you going horizontal (SFRs or townhomes) or vertical multifamily?

• What kind of financing are you using — construction debt, private equity, funds?

• Are you holding long-term or planning to sell to institutional buyers?

Also wondering if anyone’s stacking incentives — like CRA, LIHTC, or even local housing grants — to make the numbers work better.

Would love to hear what you’ve tried, what’s worked, or even what to avoid. This seems like a big opportunity, but not a lot of people are talking about it (yet).