Executive Summary · Bluebonnet @ Lytle
Bluebonnet @ Lytle
Executive Summary

A 158.355-acre master-planned community in Lytle, Texas on the IH-35 corridor south of San Antonio — 697 residences across five phases, anchored by the Bluebonnet Yards commercial district. The investor product is a new-construction single-family rental at $310,000 with two developer-coordinated financing structures and integrated professional property management.

Sponsor: Sundara Homes LLC · Houston, Texas
Location: Lytle, Texas · IH-35 · San Antonio MSA
Program: 697 residences · 158.355 acres · 5 phases
At a Glance
Total Residences697
Site Area158.355 acres
Development Phases5
Commercial DistrictBluebonnet Yards
SFR Price Point$310,000
Earnest Money$3,100 (1%)
Target Rent · Base$1,950/mo
Rent Escalation+$25/mo per year
Down Payment Options20% or 10%
01
The Opportunity
A 158-Acre Master-Planned Community on the IH-35 Corridor

Bluebonnet @ Lytle is a 158.355-acre master-planned community rising in Lytle, Texas, at the southern edge of the San Antonio metropolitan area along the IH-35 growth corridor. Planned for 697 residences delivered across five phases and anchored by the Bluebonnet Yards commercial district, the community is designed around a Centenarian Lifestyle vision: walkable streets, greenway connectivity, multigenerational amenities, and homes built for long-term livability and durability.

For investors, Bluebonnet offers institutionally structured access to one of the most resilient asset classes of the past two decades — the Texas single-family rental — with new-construction product, developer-coordinated financing incentives, and integrated professional property management.

Acres
158
Master-planned
Residences
697
Five phases
SFR Price Point
$310K
New construction
Target Rent
$1,950
Base scenario
02
Market
Why Lytle, Why Now

The San Antonio growth corridor. Lytle sits roughly 25 minutes southwest of downtown San Antonio on IH-35, in the path of one of the fastest-growing metropolitan regions in the United States. As land and housing costs in the urban core rise, demand pushes outward along the interstate — and communities offering new housing stock at attainable price points capture that migration first.

Scale creates value. A 697-home master-planned community does not merely participate in local growth — it drives it. Build-out brings new rooftops, the Bluebonnet Yards commercial program, infrastructure investment, and sustained construction employment. Early-phase investors benefit from the appreciation trajectory the community's own development creates across subsequent phases.

Texas fundamentals. No state income tax, a landlord-favorable regulatory environment, sustained in-migration, and a diversified San Antonio employment base spanning military, healthcare, cybersecurity, and advanced manufacturing.

New Construction Advantage
Investors acquire brand-new homes with builder warranties, modern energy-efficient systems, and minimal near-term capital expenditure — a materially different risk profile from vintage rental stock. Professional property management is available to every investor-owner, delivering a genuinely passive ownership experience.
03
The Product
New Single-Family Rental at $310,000

The investment unit is a new single-family rental home at a purchase price of $310,000, secured with 1% earnest money ($3,100) credited toward the down payment at closing. Target market rent in the base scenario is $1,950/month, escalating $25/month each year.

Year-1 Operating ModelAnnual
Gross scheduled rent ($1,950 × 12)$23,400
Property taxes (est. 2.0% effective)($6,200)
Property management (6% of rent)($1,404)
Insurance (est.)($1,800)
HOA ($75/month)($900)
Net Operating Income$13,096
Cap rate on purchase price4.22%
Annual depreciation ($248,000 ÷ 27.5 yrs)$9,018
04
Financing
Two Developer-Coordinated Structures
Option A — 20% Down @ 3.75%

$62,000 down (inclusive of earnest money) on a 30-year fixed mortgage, no PMI. The equity-forward structure — the program's lowest lifetime financing cost.

Option B — 10% Down @ 3.99% + PMI

$31,000 down on a 30-year fixed mortgage, plus private mortgage insurance until the loan amortizes to 80% of purchase price. Half the capital controls the same asset.

The Shelter Mechanism
Cash flow and taxable income diverge by exactly two items: depreciation (a deduction with no cash cost) and principal paydown (a cash cost with no deduction). Because depreciation exceeds principal in the early years, both structures report tax losses in the early hold period — sheltering rental income while equity builds. Only the interest portion of the mortgage payment is deductible.
05
Scenarios
Rent Sensitivity — $1,950 / $2,100 / $2,400
Metric$1,950 Rent$2,100 Rent$2,400 Rent
Gross scheduled rent$23,400$25,200$28,800
Net Operating Income$13,096$14,788$18,172
Cap rate on purchase price4.22%4.77%5.86%
Year-1 cash flow and paper loss by financing structure, full year-by-year ten-year projections, appreciation scenarios from 1% to 5% CAGR, and the S&P 500 comparison are in the gated Financials document.

Full plan & financial models

The Business Plan covers the master plan, phasing, product specification and risk framework. The Financials document carries the 10-year projections, appreciation scenarios, and the S&P 500 comparison across all three rent cases.

Disclaimer · Investment Materials
Confidentiality & Forward-Looking Statements
Illustrative projections only — not a forecast, guarantee, offer of securities, or tax, legal or investment advice. Figures assume 30-year fixed financing, an 80/20 improvement-to-land basis, a 2.0% effective property-tax rate, $75/month HOA, 6% management, $1,800/year insurance, 100% occupancy with no vacancy, credit loss, maintenance reserve or leasing fees, and currently deductible passive losses at the stated bracket. Returns are computed on the down payment only and exclude closing costs and reserves. Starting rent and $25/month annual escalation are targets subject to market conditions. Financing terms are subject to lender approval and program availability. Depreciation is recaptured at up to 25% on sale unless deferred under §1031. Real estate involves risk, including illiquidity, leverage risk, and possible loss of principal. Prospective investors must consult their own tax, legal and financial advisors.