Build-to-rent (BTR) communities are purpose-built neighborhoods of single-family-style rental homes — private yards, garages, and professional management — that capture renters priced out of homeownership. With the monthly mortgage payment on a median U.S. home up sharply since 2021 and a persistent starter-home shortage, BTR has become one of the fastest-growing residential asset classes, earning meaningful rent premiums over traditional apartments. In Waco, LV5 Capital offers accredited investors access to Trulo Homes Cottonwood Creek: 206 duplex-style rental homes at I-35 and Bagby Avenue developed by Red River Development ($599M AUM, 1,903 homes managed). The business plan targets a 24.5% IRR and 2.01x equity multiple over a roughly 43-month hold, with cash flow projected to begin around month 30 — projections, not guarantees. Ground-up development carries construction risk, and LV5 co-invests through an SPV rather than solely owning the project.
Build-to-rent communities are purpose-built neighborhoods of single-family-style rental homes — private yards, garages, and professional on-site management — designed for renters who want a house rather than an apartment. BTR communities typically earn rent premiums over traditional multifamily.
The monthly mortgage payment on a median U.S. home rose sharply after 2021, pricing many households out of ownership, while starter-home construction remains far below demand. Purpose-built rentals capture that demand; a 2025 Zonda study supporting the Cottonwood Creek underwriting targeted a roughly 16.8% per-unit rent premium versus traditional multifamily.
Red River Development is a vertically integrated build-to-rent developer-operator behind the Trulo Homes brand, with $599M in assets under management, 1,903 homes managed, $169M of equity invested, and six Trulo communities built or underway, including the stabilized Trulo Jenks community in Oklahoma.
The business plan targets a 24.5% IRR, 2.01x equity multiple, and 8.8% cash-on-cash beginning around month 30, over a roughly 43-month hold. These are projections, not guarantees. Ground-up development carries construction and lease-up risk, and cash flow is not expected until after lease-up begins.
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