Cottonwood Communities 10-K 25 Mar 20 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2019	Mar. 20, 2020	Jun. 30, 2019
Document Information [Line Items]
Document Type	10-K
Document Transition Report	false
Entity Registrant Name	Cottonwood Communities, Inc.
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0001692951
Amendment Flag	false
Entity Public Float			$ 0
Common Class A
Document Information [Line Items]
Entity Common Stock Outstanding		10,025,160
Common Class T
Document Information [Line Items]
Entity Common Stock Outstanding		2,500

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Assets
Real estate assets, net	$ 63,905,651	$ 0
Investment in unconsolidated real estate entity	4,961,868	0
Real estate note investment, net	2,059,309	0
Cash and cash equivalents	47,549,804	3,406,175
Restricted cash	192,190	0
Other assets	707,524	317,279
Total assets	119,376,346	3,723,454
Liabilities
Credit facility, net	34,990,146	0
Preferred stock, net	809,478	0
Related party payables	287,561	128,617
Accounts payable, accrued expenses and other liabilities	992,689	29,146
Total liabilities	37,079,874	157,763
Commitments and contingencies (Note 12)
Stockholders' equity
Common stock, $0.01 par value, 1,000,000,000 shares authorized; 8,851,759 and 366,654 shares issued and outstanding at December 31, 2019 and 2018, respectively	88,518	3,667
Additional paid-in capital	87,973,949	3,662,233
Accumulated distributions	(2,369,592)	0
Accumulated deficit	(3,396,403)	(100,209)
Total stockholders' equity	82,296,472	3,565,691
Total liabilities and stockholders' equity	$ 119,376,346	$ 3,723,454

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Revenues [Abstract]
Rental and other property revenues	$ 2,797,475	$ 0
Real estate note investment interest	44,777	0
Total revenues	2,842,252	0
Expenses
Property operations expense	1,428,925	0
Reimbursable operating expenses to related parties	541,652	0
Asset management fee to related party	811,395	0
Depreciation and amortization	2,738,190	0
General and administrative expenses	876,808	100,209
Total operating expenses	6,396,970	100,209
Other income (expense)
Equity in earnings of unconsolidated real estate entity	272,805	0
Interest income	492,542	0
Interest expense	(916,626)	0
Total other expense	(151,279)	0
Total expenses before asset management fee waiver	(6,548,249)	(100,209)
Asset management fee waived by Advisor	409,803	0
Net expenses after asset management fee waiver	(6,138,446)	(100,209)
Net loss	$ (3,296,194)	$ (100,209)
Weighted-average shares outstanding (in shares)	4,711,343	32,053
Net loss per common share - basic and diluted (in dollars per share)	$ (0.70)	$ (3.13)

Consolidated Statements of Stoc

Consolidated Statements of Stockholder's Equity - USD ($)	Total	Common Stock	Additional Paid-In Capital	Accumulated Distributions	Accumulated Deficit
Shares outstanding, beginning balance (in shares) at Dec. 31, 2017		20,000
Stockholders' equity, beginning balance at Dec. 31, 2017	$ 200,000	$ 200	$ 199,800	$ 0	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)		346,654
Issuance of common stock	3,465,900	$ 3,467	3,462,433
Net loss	$ (100,209)				(100,209)
Shares outstanding, ending balance (in shares) at Dec. 31, 2018	366,654	366,654
Stockholders' equity, ending balance at Dec. 31, 2018	$ 3,565,691	$ 3,667	3,662,233	0	(100,209)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)		8,485,105
Issuance of common stock	84,396,567	$ 84,851	84,311,716
Distributions to investors	(2,369,592)			(2,369,592)
Net loss	$ (3,296,194)				(3,296,194)
Shares outstanding, ending balance (in shares) at Dec. 31, 2019	8,851,759	8,851,759
Stockholders' equity, ending balance at Dec. 31, 2019	$ 82,296,472	$ 88,518	$ 87,973,949	$ (2,369,592)	$ (3,396,403)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net loss	$ (3,296,194)	$ (100,209)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	2,738,190	0
Equity in earnings	(272,805)	0
Amortization of real estate note investment issuance cost	19,904	0
Amortization of debt issuance costs	62,248	0
Noncash interest expense on preferred stock	4,047	0
Changes in operating assets and liabilities:
Other assets	(5,153)	(61,279)
Related party payables	158,944	128,617
Accounts payable, accrued expenses and other liabilities	131,677	29,146
Net cash used in operating activities	(459,142)	(3,725)
Cash flows from investing activities:
Acquisition of real estate	(31,171,298)	0
Capital improvements to real estate	(190,488)	0
Investment in unconsolidated real estate entity	(4,689,063)	0
Issuance of real estate note investment including issuance costs	(2,079,213)	0
Net cash used in investing activities	(38,130,062)	0
Cash flows from financing activities:
Proceeds from issuance of preferred stock, net of issuance costs	805,431	0
Proceeds from issuance of common stock	83,722,064	3,209,900
Distributions to common stockholders	(1,602,472)	0
Net cash provided by financing activities	82,925,023	3,209,900
Net increase in cash and cash equivalents and restricted cash	44,335,819	3,206,175
Cash and cash equivalents and restricted cash, beginning of period	3,406,175	200,000
Cash and cash equivalents and restricted cash, end of period	47,741,994	3,406,175
Reconciliation of cash and cash equivalents and restricted cash to the consolidated balance sheets:
Total cash and cash equivalents and restricted cash	47,741,994	200,000
Supplemental disclosure of cash flow information:
Cash paid for interest	726,949	0
Supplemental disclosure of non-cash investing and financing activities:
Credit facility entered into in conjunction with acquisition of real estate	35,995,000	0
Assumption of liabilities in connection with acquisition of real estate	452,639	0
Proceeds receivable for issuance of common stock	528,900	256,000
Issuance of common stock through dividend reinvestment program	$ 401,603	$ 0

Economic Dependency

Economic Dependency	12 Months Ended
	Dec. 31, 2019
Related Party Transactions [Abstract]
Economic Dependency	Related-Party Transactions Advisory Agreement Our advisor is responsible for making decisions related to the structuring, acquisition, management, financing and disposition of our assets in accordance with our investment objectives, guidelines, policies and limitations. Our advisor also manages day-to-day operations, retains property managers, and performs other duties. These activities are all subject to oversight by our board of directors. Per the terms of our advisory agreement, our advisor is entitled to receive the fees for these services which are mentioned below. Asset Management Fee Our advisor receives an annual asset management fee, paid monthly, in an amount equal to 1.25% of gross assets, as defined in the advisory agreement, as of the last day of the prior month. We incurred asset management fees of $811,395 for the year ended December 31, 2019. No asset management fees were incurred for the year ended December 30, 2018. Our advisor has agreed to waive its asset management fee each month in an amount equivalent to the 6.0% discount provided to those who purchase Class A shares through certain distribution channels as specified in the prospectus for the Offering. This is to ensure that we receive proceeds equivalent to those received for sales of shares outside of these channels. As a result, the asset management fee waived by our advisor for the year ended December 31, 2019 was $409,803. Contingent Acquisition Fee After common stockholders have received, or are deemed to have received (with respect to a merger or a listing), together as a collective group, aggregate distributions sufficient to provide a return of their invested capital, plus a cumulative, noncompounded annual return on their investment (a “Required Return”), our advisor will receive a contingent acquisition fee from us that is a percentage of the cost of investments acquired or originated by us, or the amount to be funded by us to acquire or originate loans, including acquisition and origination expenses and any debt attributable to such investments plus significant capital expenditures related to the development, construction or improvement of the investment as follows: 1% contingent acquisition fee if stockholders receive a 6% Required Return; and 2% additional contingent acquisition fee if stockholders receive a 13% Required Return. The contingent acquisition fee is immediately payable when each Required Return has been met. The fee is based on all assets we have acquired even if no longer in our portfolio. To the extent we acquire any assets after satisfying the return threshold, the contingent acquisition fee will be immediately payable at the closing of the acquisition. If our advisor agreement is terminated before August 13, 2028 for any reason other than our advisor’s fraud, willful misconduct or gross negligence, our advisor will receive a 3% contingent acquisition fee less the amount of any prior payments of contingent acquisition fees to our advisor. No contingent acquisition fees were incurred for the years ended December 31, 2019 and 2018. Contingent Financing Fee After our common stockholders have received, or are deemed to have received (with respect to a merger or a listing), together as a collective group, aggregate distributions sufficient to provide a return of their invested capital, plus a Required Return of 13%, our advisor will receive from us a contingent financing fee of 1% of the original principal amount of any financing obtained or assumed by us. The contingent financing fee is payable upon satisfying the return threshold with respect to any financing obtained or assumed by us prior to satisfaction of the return threshold and at the closing of new financing following satisfaction of the return threshold. If our advisor agreement is terminated before August 13, 2028 for any reason other than the advisor’s fraud, willful misconduct or gross negligence, the payment of the contingent financing fee will be immediately due and payable. No contingent financing fees were incurred for the years ended December 31, 2019 and 2018. Acquisition Expense Reimbursement Subject to the limitations contained in our charter, our advisor receives reimbursement from us for all out-of-pocket expenses incurred in connection with the selection and acquisition or origination of investments, whether or not we ultimately acquire the property or other real estate-related investment. Acquisition expenses reimbursed to our advisor during the years ended December 31, 2019 and 2018 were not significant, as we have generally incurred and paid such expenses directly. Reimbursable Operating Expenses We reimburse our advisor or its affiliates for all actual expenses paid or incurred by our advisor or its affiliates in connection with the services provided to us, including our allocable share of our advisor’s or its affiliates’ overhead, such as rent, personnel costs, utilities, cybersecurity and IT costs; provided, however, that we will not reimburse our advisor or its affiliates for salaries, wages and related benefits of personnel who perform investment advisory services for us or serve as our executive officers. In addition, subject to the approval of our board of directors we may reimburse our advisor or its affiliates for costs and fees associated with providing services to us that we would otherwise engage a third party to provide. Reimbursable company operating expenses were $541,652 for the year ended December 31, 2019. There were no reimbursable company operating expenses for the year ended December 31, 2018. Commencing with the quarter ending June 30, 2020, our advisor must reimburse us the amount by which our aggregate total operating expenses for the four fiscal quarters then ended exceed the greater of 2% of our average invested assets or 25% of our net income, unless the conflicts committee has determined that such excess expenses were justified based on unusual and non-recurring factors. Property Management Fee Our property manager operates under the terms of separate property management agreements for each community. Our property manager receives from us a property management fee in an amount up to 3.5% of the annual gross revenues of the multifamily apartment communities that it manages. We incurred property management fees of $97,877 for the year ended December 31, 2019. No property management fees were incurred in 2018. Property management fees are presented within property operations expense on the consolidated statements of operations. Promotional Interest Cottonwood Communities Advisors Promote, LLC, an affiliated entity, will receive from the Operating Partnership a promotional interest equal to 15% of net income and cash distributions, but only after our common stockholders, together as a collective group, receive in the aggregate, cumulative distributions from us sufficient to provide a return of their invested capital plus a 6% cumulative, non-compounded annual return on their invested capital. Cottonwood Communities Advisors Promote, LLC, will not be required to make any capital contributions to our Operating Partnership in order to obtain the promotional interest. In addition, Cottonwood Communities Advisors Promote, LLC will be entitled to a separate one-time payment upon (1) the listing of our common stock on a national securities exchange or (2) the occurrence of certain events that result in the termination or non-renewal of our advisory agreement, in each case for an amount that Cottonwood Communities Advisors Promote, LLC would have been entitled to receive as if our Operating Partnership had disposed of all of its assets at the market value of our shares of common stock as of the date of the event triggering the payment. A separate one-time payment following the termination or non-renewal of our advisory agreement for reasons unrelated to a liquidity event for our common stockholders will be in the form of an interest-bearing promissory note that is payable only after our common stockholders have actually received distributions in the amount required before Cottonwood Communities Advisors Promote, LLC can receive the promotional interest. Provided, however, if the promissory note has not been repaid prior to a liquidity event for our common stockholders, the promissory note shall be paid in full on the date of or immediately prior to the liquidity event. Independent Director Compensation We pay each of our independent directors an annual retainer of $10,000. We also pay our independent directors for attending meetings as follows: (i) $500 for each board meeting attended and (ii) $500 for each committee meeting attended (if held at a different time or place than a board meeting). All directors receive reimbursement of reasonable out of pocket expenses incurred in connection with attendance at meetings of the board of directors.

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01
Preferred stock, shares authorized (in shares)	100,000,000
Common stock, par value (in dollars per share)	$ 0.01
Common stock, shares authorized (in shares)	1,000,000,000
Common stock, shares issued (in shares)	8,851,759	366,654
Common stock, shares outstanding (in shares)	8,851,759	366,654

Organization and Business

Organization and Business	12 Months Ended
	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Business	Organization and Business Cottonwood Communities, Inc. (the "Company," we," "our," or "us") is a Maryland corporation formed on July 27, 2016 that intends to qualify as a real estate investment trust ("REIT") beginning with the taxable year ending December 31, 2019. The Company is the sole general partner of Cottonwood Communities O.P., LP, a Delaware limited partnership (the “Operating Partnership”). Cottonwood Communities Investor, LLC, a wholly owned subsidiary of Cottonwood Residential O.P., LP (“CROP”), is the sole limited partner of the Operating Partnership. Unless the context indicates otherwise, the “Company,” “we,” “our” or “us” refers to Cottonwood Communities, Inc. and its consolidated subsidiaries, including the Operating Partnership. We were formed to invest in multifamily apartment communities and real estate related assets located throughout the United States. Substantially all of our business is conducted through the Operating Partnership. We are offering $750,000,000 in shares in the Offering, consisting of $675,000,000 of shares of common stock offered in our primary offering and $75,000,000 in shares of common stock pursuant to the DRP Offering at a purchase price of $10.00 per share (with discounts available to certain categories of purchasers) in both the primary and DRP Offering. Common stock has two classes, Class A and Class T. The share classes have a different selling commission structure; however, these offering-related expenses are being paid by our advisor without reimbursement by us. We are offering to sell any combination of Class A and Class T common stock in the Offering, with a dollar value up to the maximum offering amount. On November 8, 2019, we launched the Private Offering, a private placement offering exempt from registration under the Securities Act for which we are offering a maximum of $50,000,000 in shares of Series 2019 Preferred Stock to accredited investors at a purchase price of $10.00 per share. Offering-related expenses in the Private Offering are paid by us from gross offering proceeds. We are externally managed and have no employees. From August 13, 2018 to March 1, 2019, Cottonwood Communities Management, LLC, an affiliate of CROP, acted as our advisor and our property manager. Effective March 1, 2019, CC Advisors III, LLC (our “advisor”), also an affiliate of CROP, became our advisor. Cottonwood Communities Management, LLC (our "property manager") continues to act as property manager for our multifamily apartment communities. As of December 31, 2019, we have raised $1,198,000 and $88,062,000 of Series 2019 Preferred Stock and common stock, respectively. We own a multifamily apartment community in West Palm Beach, Florida, have issued a B Note secured by a deed of trust on a multifamily development project in Allen, Texas, have made a preferred equity investment in a multifamily development project in Ybor City, Florida, and have entered into an agreement to provide a preferred equity investment in an entity that has purchased and intends to develop a parcel of land in Denver, Colorado (see Note 12 ). Subsequent to December 31, 2019, and as described in Note 1 4

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of management, the accompanying consolidated financial statements contain all adjustments and eliminations, consisting only of normal recurring adjustments necessary for a fair presentation in conformity with GAAP. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its consolidated subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Investments in Real Estate In accordance with the guidance for business combinations, we determine whether the acquisition of a property qualifies as a business combination, which requires that the assets acquired and liabilities assumed constitute a business. If the property acquired does not constitute a business, we account for the transaction as an asset acquisition. When substantially all of the fair value of the gross assets to be acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the asset or set of assets is not a business. All property acquisitions to date have been accounted for as asset acquisitions. We account for asset acquisitions by allocating the total cost to the individual assets acquired and liabilities assumed on a relative fair value basis. Transaction costs associated with the acquisition of a property are capitalized as incurred and are allocated to land, building, furniture, fixtures and equipment and intangible assets on a relative fair value basis. Real estate assets and liabilities include land, building, furniture, fixtures and equipment, other personal property, in-place lease intangibles and debt. The fair values are determined using methods similar to those used by independent appraisers, and include using replacement cost estimates less depreciation, discounted cash flows, market comparisons, and direct capitalization of net operating income. Real Estate Assets, Net We state real estate assets at cost, less accumulated depreciation and amortization. We capitalize costs related to the development, construction, improvement, and significant renovation of properties, which include capital replacements such as scheduled carpet replacement, new roofs, HVAC units, plumbing, concrete, masonry and other paving, pools and various exterior building improvements. We compute depreciation on a straight-line basis over the estimated useful lives of the related assets. Intangible assets are amortized to depreciation and amortization over the remaining lease term. The useful lives of our real estate assets are as follows (in years): Land improvements 5-15 Buildings 30 Building improvements 5-15 Furniture, fixtures and equipment 5-15 Intangible assets Over lease term We expense ordinary maintenance and repairs to operations as incurred. We capitalize significant renovations and improvements that improve and/or extend the useful life of an asset and amortize over their estimated useful life, generally five to 15 years. Impairment of long-lived assets Long-lived assets include real estate assets, acquired intangible assets, and real estate note investments. Intangible assets are amortized on a straight-line basis over their estimated useful lives. On an annual basis, we assess potential impairment indicators of long-lived assets. We also review for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Indicators that may cause an impairment review include, but are not limited to, significant under-performance relative to historical or projected future operating results and significant market or economic trends. When we determine the carrying value of a long-lived asset may not be recoverable based upon the existence of one or more of the above indicators, we determine recoverability by comparing the carrying amount of the asset to the net future undiscounted cash flows the asset is expected to generate. We recognize, if appropriate, an impairment charge equal to the amount by which the carrying amount exceeds the fair value of the asset. Investment in Unconsolidated Real Estate Entity Real estate investments where we have significant noncontrolling influence are accounted for under the equity method. Our equity method investment in an unconsolidated real estate entity is recorded at cost, adjusted for our share of equity in earnings for each period, and reduced by distributions. We assess potential impairment of investments in unconsolidated real estate entities whenever events or changes in circumstances indicate that the fair value of the investment is less than its carrying value. To the extent impairment has occurred, and is not considered temporary, the impairment is measured as the excess of the carrying amount of the investment over the fair value of the investment. No impairment losses were recognized for the year ended December 31, 2019 related to the Company's investment in an unconsolidated real estate entity. Evaluation of Acquisition, Construction and Development Investments We evaluate our note investments at the time of origination to determine whether these arrangements represent, in economic substance, an investment in real estate or a loan using the guidance for acquisition, development, and construction (“ADC”) arrangements. This includes evaluating the risks and rewards of each arrangement and the characteristics of an owner of real estate versus those of a lender. Real Estate Note Investment We carry our real estate note investment at amortized cost with an assessment made for impairment in the event recoverability of the principal amount becomes doubtful. If, upon testing for impairment, the fair value result of the real estate note investment or its collateral is lower than the carrying amount of the note, an allowance is recorded to lower the carrying amount to fair value, with a loss recorded in earnings. The amortized cost of our real estate note investment on the consolidated balance sheets consists of drawn amounts on the notes, net of unamortized costs and fees directly associated with the origination of the note. Costs we incur associated with originating real estate note investments are deferred and amortized on a straight-line basis, which approximates the effective interest method, over the term of the corresponding real estate note investment as an adjustment to interest income and are reflected on our consolidated statements of operations as real estate note investment interest. Interest income on our real estate note investment is recognized on an accrual basis over the life of the note and is being collected monthly. Cash and Cash Equivalents We consider all cash on deposit, money market funds and short-term investments with original maturities of three months or less to be cash and cash equivalents. Cash and cash equivalents consist of amounts the Company has on deposit with major commercial financial institutions. Restricted Cash Restricted cash includes residents' security deposits, utility deposits, and escrow deposits held by the lender for property related items. Preferred Stock Series 2019 Preferred Stock is described in Note 8 . The instrument is classified as a liability on the consolidated balance sheet due to the mandatory redemption feature of the instrument on a fixed date for a fixed amount. Preferred stock distributions are recorded as interest expense. Debt Financing Costs Debt financing costs are presented as a direct deduction from the carrying amount of the associated liability, which includes our credit facility and preferred stock. Debt financing costs are amortized over the life of the related liability through interest expense. Rental and Other Property Revenues Revenue related to leases is recognized on an accrual basis when due from residents. Rental payments are generally due on a monthly basis and recognized on a straight-line basis over the noncancellable lease term because collection of the lease payments was probable at lease commencement. Our leases with residents may also provide that the resident reimburse us for certain costs, primarily the resident’s share of utilities expenses, incurred by the apartment community. These services represent non-lease components in a contract as we transfer a service to the lessee other than the right to use the underlying asset. We have elected the practical expedient under the GAAP leasing standard to not separate lease and non-lease components from our lease contracts as the timing and pattern of revenue recognition for the non-lease component and related lease component are the same and the combined single lease component would be classified as an operating lease. Income Taxes We intend to qualify as a REIT and to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, beginning with the year ending December 31, 2019. To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of our taxable income to our stockholders. As a REIT, we generally are not subject to federal corporate income tax on that portion of our taxable income that is currently distributed to stockholders. If we fail to qualify as a REIT in any taxable year, we will be subject to federal income tax on our taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost unless the Internal Revenue Service grants relief under certain statutory provisions. Such an event could materially and adversely affect our net income and net cash available for distribution to stockholders. However, we intend to organize and operate in such a manner as to qualify for treatment as a REIT. Organization and Offering Costs

Real Estate Assets, Net

Real Estate Assets, Net	12 Months Ended
	Dec. 31, 2019
Business Combinations [Abstract]
Real Estate Assets, Net	Real Estate Assets, Net The following table summarizes the carrying amounts of our consolidated real estate assets: December 31, 2019 Building and building improvements $ 52,466,583 Land and land improvements 10,658,155 Furniture, fixtures and equipment 2,015,778 Intangible assets 1,503,325 66,643,841 Less: Accumulated depreciation and amortization (2,738,190) Real estate assets, net $ 63,905,651 We had no real estate assets as of December 31, 2018. Asset acquisitions On May 30, 2019, we acquired Cottonwood West Palm (formerly "Luma at West Palm Beach"), a multifamily community in West Palm Beach, Florida for $66,923,500. Acquired assets and liabilities were recorded at relative fair value as an asset acquisition ( Note 2 ). The following table summarizes the purchase price allocation of the real estate assets acquired during the year ended December 31, 2019: Allocated Amounts Property Building Land Land Improvements Personal Property Intangible Total Cottonwood West Palm $52,276,096 $9,379,895 $1,278,260 $2,015,778 $1,503,325 $66,453,354 The weighted-average amortization period for the intangible lease assets acquired in connection with the Cottonwood

Investments in Unconsolidated R

Investments in Unconsolidated Real Estate	12 Months Ended
	Dec. 31, 2019
Real Estate [Abstract]
Investments in Unconsolidated Real Estate	Investment in Unconsolidated Real Estate Lector85 Investment At December 31, 2019, we had issued approximately $4,689,000 of our $9,900,000 preferred equity investment (the "Lector 85 Investment") in a joint venture with Milhaus, LLC ("Milhaus"). Milhaus is using the Lector85 Investment, a $34,000,000 construction loan and equity of $9,300,000 to develop Lector85, a 254-unit multifamily project in Ybor City, Florida that includes retail space. The Lector85 Investment is being drawn in stages as needed throughout the construction of the project. The primary terms of the Lector85 Investment are: Preferred Return (1) Latest Redemption Date (2) 13% August 15, 2024 (1) Rate will be reduced to an annualized rate of 10% upon either project stabilization, or one year following receipt of the project’s final certificate of occupancy, (whichever occurs later) and subject to satisfaction of loan-to-value and debt service coverage ratio covenants. (2) Subject to one twelve-month extension option, the Lector85 Investment cannot be redeemed earlier than two years after the receipt of all temporary certificate of occupancies. After that, it must be redeemed no later than the earlier of (i) the payment in full of the construction loan or (ii) the construction loan maturity date, which is August 15, 2022, subject to a two year extension option. The investment also has a special preferred return of $200,000 to be paid upon redemption. The Lector85 Investment is accounted for under the equity method of accounting. Equity in earnings for our Lector85 Investment is determined under the hypothetical liquidation book value ("HLBV") method, where income is recorded based on changes in what would be received should the entity liquidate all of its assets (as valued in accordance with GAAP) and distribute the resulting proceeds to its creditors and investors based on the contractually defined liquidation priorities. The HLBV method is a balance sheet focused approach commonly applied to equity investments where cash distribution percentages vary at different points in time and are not directly linked to an equity holder’s ownership percentage. Our equity investment agreement for the Lector85 Investment has liquidation rights and priorities that are sufficiently different from the ownership percentages such that the HLBV method was deemed appropriate. The difference between the calculated liquidated distribution amounts at the beginning and the end of the reporting period, after adjusting for capital contributions and distributions, is used to derive our share of income or loss from the equity investment for the period. Equity in earnings from the Lector85 Investment was $272,805 for the year ended December 31, 2019. Dolce B-Note At December 31, 2019, we had issued approximately $1,794,000 of a $10,000,000 B note to a developer (the "Dolce B Note"). The developer is using the proceeds from the Dolce B Note, additional financing in the amount of $45,500,000 (the “Dolce A Note”) and $17,900,000 in common equity to develop Dolce Twin Creeks, Phase II, a 366-unit multifamily project in Allen Texas that includes medical office space. The Dolce B Note is being drawn in stages as needed throughout the construction of the project. The primary terms of the Dolce B Note are: Annual Interest Interest Floor Maturity 9.5% + 1-mo libor 12% December 31, 2021 The developer is required to make monthly interest only payments with principal due at maturity, with two six

Real Estate Note Investments

Real Estate Note Investments	12 Months Ended
	Dec. 31, 2019
Real Estate [Abstract]
Real Estate Disclosure	Investment in Unconsolidated Real Estate Lector85 Investment At December 31, 2019, we had issued approximately $4,689,000 of our $9,900,000 preferred equity investment (the "Lector 85 Investment") in a joint venture with Milhaus, LLC ("Milhaus"). Milhaus is using the Lector85 Investment, a $34,000,000 construction loan and equity of $9,300,000 to develop Lector85, a 254-unit multifamily project in Ybor City, Florida that includes retail space. The Lector85 Investment is being drawn in stages as needed throughout the construction of the project. The primary terms of the Lector85 Investment are: Preferred Return (1) Latest Redemption Date (2) 13% August 15, 2024 (1) Rate will be reduced to an annualized rate of 10% upon either project stabilization, or one year following receipt of the project’s final certificate of occupancy, (whichever occurs later) and subject to satisfaction of loan-to-value and debt service coverage ratio covenants. (2) Subject to one twelve-month extension option, the Lector85 Investment cannot be redeemed earlier than two years after the receipt of all temporary certificate of occupancies. After that, it must be redeemed no later than the earlier of (i) the payment in full of the construction loan or (ii) the construction loan maturity date, which is August 15, 2022, subject to a two year extension option. The investment also has a special preferred return of $200,000 to be paid upon redemption. The Lector85 Investment is accounted for under the equity method of accounting. Equity in earnings for our Lector85 Investment is determined under the hypothetical liquidation book value ("HLBV") method, where income is recorded based on changes in what would be received should the entity liquidate all of its assets (as valued in accordance with GAAP) and distribute the resulting proceeds to its creditors and investors based on the contractually defined liquidation priorities. The HLBV method is a balance sheet focused approach commonly applied to equity investments where cash distribution percentages vary at different points in time and are not directly linked to an equity holder’s ownership percentage. Our equity investment agreement for the Lector85 Investment has liquidation rights and priorities that are sufficiently different from the ownership percentages such that the HLBV method was deemed appropriate. The difference between the calculated liquidated distribution amounts at the beginning and the end of the reporting period, after adjusting for capital contributions and distributions, is used to derive our share of income or loss from the equity investment for the period. Equity in earnings from the Lector85 Investment was $272,805 for the year ended December 31, 2019. Dolce B-Note At December 31, 2019, we had issued approximately $1,794,000 of a $10,000,000 B note to a developer (the "Dolce B Note"). The developer is using the proceeds from the Dolce B Note, additional financing in the amount of $45,500,000 (the “Dolce A Note”) and $17,900,000 in common equity to develop Dolce Twin Creeks, Phase II, a 366-unit multifamily project in Allen Texas that includes medical office space. The Dolce B Note is being drawn in stages as needed throughout the construction of the project. The primary terms of the Dolce B Note are: Annual Interest Interest Floor Maturity 9.5% + 1-mo libor 12% December 31, 2021 The developer is required to make monthly interest only payments with principal due at maturity, with two six

Debt

Debt	12 Months Ended
	Dec. 31, 2019
Debt Disclosure [Abstract]
Debt Disclosure	Credit Facility On May 30, 2019, we entered into a Master Credit Facility Agreement with Berkadia Commercial Mortgage, LLC (the “Credit Facility”) and obtained an advance secured against Cottonwood West Palm in the amount of $35,995,000. The advance carries an interest-only term of 10 years and bears a fixed interest rate of 3.93%. We have the right to prepay all or a portion of the Facility at any time subject to certain fees and conditions contained in the loan documents. The Credit Facility is presented net of the origination fees that were incurred to obtain the financing. We may finance other future acquisitions through the Credit Facility. The aggregate loan-to-value ratio for all advances made cannot exceed 65% at the time any advance is made. There is no limit on the amount that we can borrow so long as we maintain loan-to-value ratio and other requirements as set forth in the agreement. Each advance will be cross-collateralized with the other advances. We are permitted to sell the multifamily apartment communities that are secured by the Credit Facility individually, provided that certain debt coverage ratios and other requirements are met. We are in compliance with all debt covenants as of December 31, 2019.

Fair Value Measures and Disclos

Fair Value Measures and Disclosures	12 Months Ended
	Dec. 31, 2019
Fair Value Disclosures [Abstract]
Fair Value Disclosures	Fair Value of Financial Instruments We estimate the fair value of our financial instruments using available market information and valuation methodologies we believe to be appropriate. As of December 31, 2019, the fair values of cash and cash equivalents, restricted cash, other assets, related party payables, and accounts payable, accrued expenses and other liabilities approximate their carrying values due to the short-term nature of these instruments. Fair value measurements are determined based on the assumptions that market participants would use in pricing the asset or liability. Fair value measurements are categorized into one of three levels of the fair value hierarchy based on the lowest level of significant input used. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Considerable judgment and a high degree of subjectivity are involved in developing these estimates. These estimates may differ from the actual amounts that we could realize upon settlement. The fair value hierarchy is as follows: Level 1 - Quoted (unadjusted) prices in active markets for identical assets or liabilities. Level 2 - Other observable inputs, either directly or indirectly, other than quoted prices included in Level 1, including: • Quoted prices for similar assets/liabilities in active markets; • Quoted prices for identical or similar assets/liabilities in non-active markets (e.g., few transactions, limited information, non-current prices, high variability over time); • Inputs other than quoted prices that are observable for the asset/liability (e.g., interest rates, yield curves, volatilities, default rates); and • Inputs that are derived principally from or corroborated by other observable market data. Level 3 - Unobservable inputs that cannot be corroborated by observable market data. The table below includes the carrying value and fair value for our financial instruments for which it is practicable to estimate fair value: As of December 31, 2019 As of December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value Financial Asset: Real estate note investment $ 1,793,771 $ 1,793,771 $ — $ — Financial Liability: Credit Facility $ 35,995,000 $ 37,410,000 $ — $ — Series 2019 Preferred Stock $ 1,198,000 $ 1,198,000 $ — $ —

Preferred Stock

Preferred Stock	12 Months Ended
	Dec. 31, 2019
Equity [Abstract]
Preferred Stock	Preferred Stock The Series 2019 Preferred Stock receives a fixed preferred dividend based on a cumulative, but not compounded, annual return of 5.5% (based on $10.00 per share), has a fixed redemption date and is classified as a liability on the consolidated balance sheets. We have the option to extend redemption of preferred stock for two one Dividend Rate Extension Dividend Rate Redemption Date Shares Outstanding at December 31, 2019 Dividends for the Year Ended December 31, 2019 Series 2019 Preferred Stock 5.5% 6.0% December 31, 2023 119,800 $1,569 The Series 2019 Preferred Stock ranks senior to common stock with respect to dividend rights and rights upon voluntary or involuntary liquidation, dissolution or winding up of the company.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2019
Equity [Abstract]
Stockholders' Equity	Stockholders' Equity Our charter authorizes the issuance of up to 1,100,000,000 shares of capital stock, of which 1,000,000,000 shares are designated as common stock at $0.01 par value per share and 100,000,000 are designated as preferred stock at $0.01 par value per share. Common Stock Effective August 13, 2019, we established two classes of common stock by designating 500,000,000 shares of common stock as Class A and 500,000,000 shares of common stock as Class T. In addition, on August 13, 2019, the currently issued and outstanding shares of common stock were renamed as Class A common stock. Both classes have identical rights and privileges. Holders of our Class A and Class T common stock are entitled to receive such distributions as may be declared from time to time by our board of directors out of legally available funds, subject to any preferential rights of outstanding preferred stock. With respect to each authorized and declared distribution, each outstanding share of common stock shall be entitled to receive the same amount. Stockholders are also entitled to one vote per share on all matters submitted to a vote, including the election of directors. As of December 31, 2019, we had outstanding Class A shares of 8,851,759, which includes 20,000 shares owned by CROP and 40,160 issued through our distribution reinvestment program. No Class T shares were issued and outstanding as of December 31, 2019. Preferred Stock The board of directors is authorized, without approval of common stockholders, to provide for the issuance of preferred stock, in one or more classes or series, with such rights, preferences and privileges as the board of directors approves. Effective November 8, 2019, we classified and designated 5,000,000 shares of our authorized but unissued preferred stock as shares of Series 2019 Preferred Stock. The Series 2019 Preferred Stock ranks senior to common stock with respect to dividend rights and rights upon voluntary or involuntary liquidation, dissolution or winding up of the company. Holders of our Series 2019 Preferred Stock have no voting rights. See Note 8 for additional information regarding these shares. Common Stock Distributions Distributions on our common stock are determined by the board of directors based on our financial condition and other relevant factors. Common stockholders may choose to receive cash distributions or purchase additional shares through our distribution reinvestment plan. We have paid distributions from offering proceeds and from cash flows from operations, and we may continue to fund distributions with offering proceeds. For the year ended December 31, 2019, we paid aggregate distributions of $2,004,075, including $1,602,472 distributions paid in cash and $401,603 of distributions reinvested through our distribution reinvestment plan. Accrued distributions declared but not yet paid as December 31, 2019 were $365,517. Distributions were $0.50 per common share for the year ended December 31, 2019. For the year ended December 31, 2019, 100% (unaudited) of distributions to stockholders were reported as a return of capital or, to the extent they exceed a stockholder’s adjusted tax basis, as gains from the sale or exchange of property.

Related-Party Transactions

Related-Party Transactions	12 Months Ended
	Dec. 31, 2019
Related Party Transactions [Abstract]
Related-Party Transactions	Related-Party Transactions Advisory Agreement Our advisor is responsible for making decisions related to the structuring, acquisition, management, financing and disposition of our assets in accordance with our investment objectives, guidelines, policies and limitations. Our advisor also manages day-to-day operations, retains property managers, and performs other duties. These activities are all subject to oversight by our board of directors. Per the terms of our advisory agreement, our advisor is entitled to receive the fees for these services which are mentioned below. Asset Management Fee Our advisor receives an annual asset management fee, paid monthly, in an amount equal to 1.25% of gross assets, as defined in the advisory agreement, as of the last day of the prior month. We incurred asset management fees of $811,395 for the year ended December 31, 2019. No asset management fees were incurred for the year ended December 30, 2018. Our advisor has agreed to waive its asset management fee each month in an amount equivalent to the 6.0% discount provided to those who purchase Class A shares through certain distribution channels as specified in the prospectus for the Offering. This is to ensure that we receive proceeds equivalent to those received for sales of shares outside of these channels. As a result, the asset management fee waived by our advisor for the year ended December 31, 2019 was $409,803. Contingent Acquisition Fee After common stockholders have received, or are deemed to have received (with respect to a merger or a listing), together as a collective group, aggregate distributions sufficient to provide a return of their invested capital, plus a cumulative, noncompounded annual return on their investment (a “Required Return”), our advisor will receive a contingent acquisition fee from us that is a percentage of the cost of investments acquired or originated by us, or the amount to be funded by us to acquire or originate loans, including acquisition and origination expenses and any debt attributable to such investments plus significant capital expenditures related to the development, construction or improvement of the investment as follows: 1% contingent acquisition fee if stockholders receive a 6% Required Return; and 2% additional contingent acquisition fee if stockholders receive a 13% Required Return. The contingent acquisition fee is immediately payable when each Required Return has been met. The fee is based on all assets we have acquired even if no longer in our portfolio. To the extent we acquire any assets after satisfying the return threshold, the contingent acquisition fee will be immediately payable at the closing of the acquisition. If our advisor agreement is terminated before August 13, 2028 for any reason other than our advisor’s fraud, willful misconduct or gross negligence, our advisor will receive a 3% contingent acquisition fee less the amount of any prior payments of contingent acquisition fees to our advisor. No contingent acquisition fees were incurred for the years ended December 31, 2019 and 2018. Contingent Financing Fee After our common stockholders have received, or are deemed to have received (with respect to a merger or a listing), together as a collective group, aggregate distributions sufficient to provide a return of their invested capital, plus a Required Return of 13%, our advisor will receive from us a contingent financing fee of 1% of the original principal amount of any financing obtained or assumed by us. The contingent financing fee is payable upon satisfying the return threshold with respect to any financing obtained or assumed by us prior to satisfaction of the return threshold and at the closing of new financing following satisfaction of the return threshold. If our advisor agreement is terminated before August 13, 2028 for any reason other than the advisor’s fraud, willful misconduct or gross negligence, the payment of the contingent financing fee will be immediately due and payable. No contingent financing fees were incurred for the years ended December 31, 2019 and 2018. Acquisition Expense Reimbursement Subject to the limitations contained in our charter, our advisor receives reimbursement from us for all out-of-pocket expenses incurred in connection with the selection and acquisition or origination of investments, whether or not we ultimately acquire the property or other real estate-related investment. Acquisition expenses reimbursed to our advisor during the years ended December 31, 2019 and 2018 were not significant, as we have generally incurred and paid such expenses directly. Reimbursable Operating Expenses We reimburse our advisor or its affiliates for all actual expenses paid or incurred by our advisor or its affiliates in connection with the services provided to us, including our allocable share of our advisor’s or its affiliates’ overhead, such as rent, personnel costs, utilities, cybersecurity and IT costs; provided, however, that we will not reimburse our advisor or its affiliates for salaries, wages and related benefits of personnel who perform investment advisory services for us or serve as our executive officers. In addition, subject to the approval of our board of directors we may reimburse our advisor or its affiliates for costs and fees associated with providing services to us that we would otherwise engage a third party to provide. Reimbursable company operating expenses were $541,652 for the year ended December 31, 2019. There were no reimbursable company operating expenses for the year ended December 31, 2018. Commencing with the quarter ending June 30, 2020, our advisor must reimburse us the amount by which our aggregate total operating expenses for the four fiscal quarters then ended exceed the greater of 2% of our average invested assets or 25% of our net income, unless the conflicts committee has determined that such excess expenses were justified based on unusual and non-recurring factors. Property Management Fee Our property manager operates under the terms of separate property management agreements for each community. Our property manager receives from us a property management fee in an amount up to 3.5% of the annual gross revenues of the multifamily apartment communities that it manages. We incurred property management fees of $97,877 for the year ended December 31, 2019. No property management fees were incurred in 2018. Property management fees are presented within property operations expense on the consolidated statements of operations. Promotional Interest Cottonwood Communities Advisors Promote, LLC, an affiliated entity, will receive from the Operating Partnership a promotional interest equal to 15% of net income and cash distributions, but only after our common stockholders, together as a collective group, receive in the aggregate, cumulative distributions from us sufficient to provide a return of their invested capital plus a 6% cumulative, non-compounded annual return on their invested capital. Cottonwood Communities Advisors Promote, LLC, will not be required to make any capital contributions to our Operating Partnership in order to obtain the promotional interest. In addition, Cottonwood Communities Advisors Promote, LLC will be entitled to a separate one-time payment upon (1) the listing of our common stock on a national securities exchange or (2) the occurrence of certain events that result in the termination or non-renewal of our advisory agreement, in each case for an amount that Cottonwood Communities Advisors Promote, LLC would have been entitled to receive as if our Operating Partnership had disposed of all of its assets at the market value of our shares of common stock as of the date of the event triggering the payment. A separate one-time payment following the termination or non-renewal of our advisory agreement for reasons unrelated to a liquidity event for our common stockholders will be in the form of an interest-bearing promissory note that is payable only after our common stockholders have actually received distributions in the amount required before Cottonwood Communities Advisors Promote, LLC can receive the promotional interest. Provided, however, if the promissory note has not been repaid prior to a liquidity event for our common stockholders, the promissory note shall be paid in full on the date of or immediately prior to the liquidity event. Independent Director Compensation We pay each of our independent directors an annual retainer of $10,000. We also pay our independent directors for attending meetings as follows: (i) $500 for each board meeting attended and (ii) $500 for each committee meeting attended (if held at a different time or place than a board meeting). All directors receive reimbursement of reasonable out of pocket expenses incurred in connection with attendance at meetings of the board of directors.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies As of December 31, 2019, we had remaining commitments on our Lector85 Investment and Dolce B-Note of up to approximately $5,211,000 and $8,206,000, respectively. See Note 4 and Note 5 for additional information regarding these investments. 2980 Huron Investment On October 25, 2019, we entered into a joint venture (the "Huron Joint Venture") to provide a preferred equity investment in an entity that has purchased and intends to develop 0.84 acres in the Union Station North neighborhood in downtown Denver, Colorado (the "2980 Huron Project"). The 2980 Huron Project is a proposed 13-story, 299-unit high-rise multifamily apartment community that will feature several amenities, including a pool deck, fitness center, aqua lounge and a co-working space and lounge. We expect construction on the 2980 Huron Project to commence in summer 2020 and to be completed in late 2022. Our joint venture partner is CA Residential, a real estate investment and development firm. CA Residential is the managing member of the Huron Joint Venture; however, we have approval rights with respect to major decisions involving the 2980 Huron Project. We expect CA Residential or its affiliates to provide services to the 2980 Huron Project for which they will earn fees separate and in addition to any payments associated with their equity interest. Pursuant to the joint venture agreement, CA Residential will use our $20,000,000 preferred equity investment, $17,500,000 in common equity and a $65,400,000 secured construction loan to fund the project. Our contributions will only be made following the contribution of the full $17,500,000 of common equity, and then will be made as project costs are incurred. As of December 31, 2019, CA Residential had not drawn on the 2980 Huron Investment. Pursuant to the terms of the joint venture agreement, our preferred equity investment has an annual preferred return of 12%, compounded monthly, and matures on the earlier of: (i) the sale of the 2980 Huron Project (ii) the maturity of the construction loan; and (iii) such earlier date as may be provided in the transaction documents, all subject to a one Litigation As of December 31, 2019, we were not subject to any material litigation nor were we aware of any material litigation threatened against us. Distribution Reinvestment Plan We have adopted a distribution reinvestment plan whereby common stockholders may elect to have us apply their dividends and other distributions to the purchase of additional shares of common stock. Participants in the plan will acquire common stock at the per share price effective on the date of purchase (initially $10.00). Share Repurchases Series 2019 Preferred Stock Upon the request of a holder of Series 2019 Preferred Stock, we may, at the sole discretion of the board of directors, repurchase their shares at the following prices, which are dependent on how long a redeeming stockholder has held each share: Share Purchase Anniversary Repurchase Price Less than 1 year $ 8.80 1 year $ 9.00 2 years $ 9.20 3 years $ 9.40 4 years $ 9.60 5 years $ 9.80 A stockholder’s death or complete disability, 2 years or more $ 10.00 No Series 2019 Preferred Stock shares were redeemed during the year ended December 31, 2019. Common Stock Our board of directors has adopted a share repurchase program that permits holders of common stock to request, on a quarterly basis, that we repurchase all or any portion of their shares. We may choose to repurchase all, some or none of the shares that have been requested to be repurchased at our discretion, subject to limitations in the share repurchase plan. The total amount of aggregate repurchased shares will be limited to 5% of the weighted average number of shares of common stock outstanding during the prior calendar year. In addition, during any calendar year, we may redeem only the number of shares that we could purchase with the amount of net proceeds from the sale of shares under our distribution reinvestment plan during the prior calendar year. The repurchase price is subject to the following discounts, depending on how long a redeeming stockholder has held each share: Share Purchase Anniversary Repurchase Price as a Percentage of Estimated Value (1) Less than 1 year No repurchase allowed 1 year - 2 years 85 % 3 years - 4 years 90 % 5 years and thereafter 95 % A stockholder’s death or complete disability, less than 2 years 95 % A stockholder’s death or complete disability, 2 years or more 100 % (1) For the purposes of the share repurchase program, the “estimated value per share” will initially be equal to the purchase price per share at which the original purchaser or purchasers of the shares bought its shares from us, and the purchase price per share will be adjusted to reflect any stock dividends, combinations, splits, recapitalizations or any similar transaction with respect to the shares outstanding. No shares were redeemed during the years ended December 31, 2019 and 2018.

Quarterly Financial Information

Quarterly Financial Information (Unaudited)	12 Months Ended
	Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Information (Unaudited)	Quarterly Financial Information (Unaudited) The following table presents our quarterly results: For the Three Months Ended March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Revenues Rental and other property revenues $ — $ 367,542 $ 1,180,972 $ 1,248,961 Real estate note investment interest — — 16,699 28,078 Total revenues — 367,542 1,197,671 1,277,039 Expenses Property operations expense — 222,641 661,181 545,103 Reimbursable operating expenses to related parties 125,000 125,485 148,906 142,261 Asset management fee to related party 19,783 137,942 296,126 357,544 Depreciation and amortization — 445,951 1,270,577 1,021,662 General and administrative expenses 118,160 134,198 210,700 413,750 Total operating expenses 262,943 1,066,217 2,587,490 2,480,320 Other income (expense) Equity in earnings of unconsolidated real estate entity — — — 272,805 Interest income 31,432 130,599 137,543 192,968 Interest expense — (134,636) (388,186) (393,804) Total other income (expense) 31,432 (4,037) (250,643) 71,969 Total expenses before asset management fee waiver (231,511) (1,070,254) (2,838,133) (2,408,351) Asset management fee waived by Advisor — — 310,484 99,319 Net expenses after asset management fee waiver (231,511) (1,070,254) (2,527,649) (2,309,032) Net loss $ (231,511) $ (702,712) $ (1,329,978) $ (1,031,993) Net loss per common share - basic and diluted $ (0.26) $ (0.18) $ (0.22) $ (0.12) For the Three Months Ended March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 Total revenues $ — $ — $ — $ — General and administrative expenses 963 1,109 — 98,137 Net loss $ (963) $ (1,109) $ — $ (98,137) Net loss per common share - basic and diluted $ (0.05) $ (0.06) $ — $ (1.45)

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2019
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events We have evaluated subsequent events up until the date the consolidated financial statements are issued for recognition or disclosure and have determined there are none to be reported or disclosed in the consolidated financial statements other than those mentioned below. One Upland Acquisition On March 19, 2020, we acquired One Upland, a multifamily apartment community in the Greater Boston area, from an unaffiliated party. One Upland was constructed in 2016 and encompasses 303,840 rentable square feet. Amenities include a swimming pool, clubhouse, outdoor amphitheater, and a dog park. The purchase price was $103,600,000, excluding closing costs. We funded the purchase with an initial draw of $50,000,000 from our new $67,600,000 credit facility and proceeds from our offerings. Status of the Offering As of March 20, 2020, we had sold 10,025,160 shares of our Class A common stock and 2,500 shares of our Class T common stock in the Offering for aggregate gross offering proceeds of $99,763,225. Included in these amounts were 63,893 shares of common stock sold pursuant to the DRP Offering for aggregate gross offering proceeds of $638,926. Status of the Private Offering As of March 20, 2020, we had sold approximately 830,099 shares of Series 2019 Preferred Stock for aggregate gross offering proceeds of approximately $8,263,329. In connection with the sale of these shares in the Private Offering, the Company paid aggregate selling commissions of $537,633 and placement fees of $162,403. Distributions Paid - Common Stock Distributions paid to holders of our common stock subsequent to December 31, 2019 were as follows: Period Date Paid Daily Distribution Rate Annualized Rate (1) Amount December 1, 2019 - December 31, 2019 January 10, 2020 $ 0.00136986 5.0% $ 365,517 January 1, 2020 - January 31, 2020 February 10, 2020 $ 0.00136612 5.0% $ 382,935 February 1 - February 29, 2020 March 9, 2020 $ 0.00136612 5.0% $ 375,939 (1) Annualized rate is based on the $10.00 purchase price and assumes distributions are paid every day for a year at the daily distribution rate. Distributions Declared - Common Stock Our board of directors have declared cash distributions to holders of our common stock as follows: Period Daily Distribution Rate Annualized Rate (1) Expected Payment March 1 - March 31, 2020 $ 0.00136612 5.0% April 2020 April 1 - April 30, 2020 $ 0.00136612 5.0% May 2020 May 1 - May 31, 2020 $ 0.00136612 5.0% June 2020 (1) Annualized rate is based on the $10.00 purchase price and assumes distributions are paid every day for a year at the daily distribution rate. Holders of our common stock may choose to receive cash distributions or purchase additional shares through our distribution reinvestment plan. Dividends Paid - Preferred Stock Dividends paid to holders of our preferred stock subsequent to December 31, 2019 were as follows: Period Date Paid Daily Annualized Rate (1) Amount December 1, 2019 - December 31, 2019 January 10, 2020 $ 0.00150685 5.5% $ 1,569 January 1, 2020 - January 31, 2020 February 10, 2020 $ 0.00150273 5.5% $ 7,361 February 1 - February 29, 2020 March 9, 2020 $ 0.00150273 5.5% $ 17,466 (1) Annualized rate is based on the $10.00 purchase price and assumes dividends are paid every day for a year at the daily dividend rate. Dividends Declared - Preferred Stock Pursuant to the terms of the preferred stock, our board of directors have declared cash dividends to holders of our preferred stock as follows: Period Daily Annualized Rate (1) Expected Payment March 1 - March 31, 2020 $ 0.00150273 5.5% April 2020 April 1 - April 30, 2020 $ 0.00150273 5.5% May 2020 May 1 - May 31, 2020 $ 0.00150273 5.5% June 2020 (1) Annualized rate is based on the $10.00 purchase price and assumes dividends are paid every day for a year at the daily dividend rate. Amendment to Lector85 Joint Venture Agreement On March 20, 2020, we entered an amendment to our joint venture agreement with Milhaus related to our Lector85 Investment to remove the minimum cumulative return upon redemption, sale or similar transaction of 35%. Amended and Restated Limited Partnership Agreement On March 25, 2020, we entered the Amended and Restated Limited Partnership Agreement of Cottonwood Communities O.P., LP to be effective as of February 1, 2020 (the “Amended OP Agreement”). The Amended OP Agreement establishes the terms of a new series of partnership units designated as LTIP Units, which we intend to issue annually as equity awards to certain of our executive officers and registered persons associated with the dealer manager for the Offering. In addition, the Amended OP Agreement reflects certain other amendments to the original agreement to permit the admission of limited partners to the Operating Partnership in addition to the current sole limited partner, Cottonwood Communities Investor, LLC. Grant of LTIP Unit Awards On March 25, 2020, we entered LTIP Unit Award Agreements with Enzio Cassinis, our Chief Executive Officer and President, and Adam Larson, our Chief Financial Officer, as well as certain other executive officers and registered persons associated with the dealer manager for the Offering, with respect to the grant of LTIP Unit awards as recommended by our compensation committee and approved by our board of directors. Including grants to our named executive officers, we awarded an aggregate of $124,380 time-based LTIP Units that will vest approximately one-quarter of the awarded amount on January 1, 2021, 2022, 2023 and 2024. In addition, we awarded performance-based LTIP Units in an aggregate target amount of $373,120. The actual amount of each award will be determined at the conclusion of the performance period and will depend on the internal rate of return as defined in the award agreement. The earned LTIP Units will become fully vested on the first anniversary of the last day of the performance period, subject to continued employment with the advisor or its affiliates. The awards are granted effective March 25, 2020, and the number of units will be valued by reference to the estimated value per share of our common stock, currently $10.00. LTIP Unit awards, whether vested or unvested, will entitle the participant to receive current distributions from the Operating Partnership equivalent to the dividends that would be payable with respect to the number of shares of our common stock underlying the LTIP Unit award. COVID - 19 In December 2019, a novel strain of coronavirus, COVID-19, was identified in Wuhan, China. This virus continues to spread globally including in the United States and has resulted in restrictions on travel and quarantines imposed. These restrictions have had a negative impact on the economy and business activity globally and may adversely impact the ability of our tenants, many of whom may be restricted in their ability to work, to pay their rent as and when due. In addition, our property managers may be limited in their ability to properly maintain our properties. The extent to which COVID-19 impacts our business will depend on future developments, which are highly uncertain and cannot be predicted, including additional actions taken to contain COVID-19 or treat its impact, among others. Our business and financial results could be materially and adversely impacted.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of management, the accompanying consolidated financial statements contain all adjustments and eliminations, consisting only of normal recurring adjustments necessary for a fair presentation in conformity with GAAP.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and its consolidated subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
Investment in Real Estate / Real Estate Assets, Net	Investments in Real Estate In accordance with the guidance for business combinations, we determine whether the acquisition of a property qualifies as a business combination, which requires that the assets acquired and liabilities assumed constitute a business. If the property acquired does not constitute a business, we account for the transaction as an asset acquisition. When substantially all of the fair value of the gross assets to be acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the asset or set of assets is not a business. All property acquisitions to date have been accounted for as asset acquisitions. We account for asset acquisitions by allocating the total cost to the individual assets acquired and liabilities assumed on a relative fair value basis. Transaction costs associated with the acquisition of a property are capitalized as incurred and are allocated to land, building, furniture, fixtures and equipment and intangible assets on a relative fair value basis. Real estate assets and liabilities include land, building, furniture, fixtures and equipment, other personal property, in-place lease intangibles and debt. The fair values are determined using methods similar to those used by independent appraisers, and include using replacement cost estimates less depreciation, discounted cash flows, market comparisons, and direct capitalization of net operating income. Real Estate Assets, Net We state real estate assets at cost, less accumulated depreciation and amortization. We capitalize costs related to the development, construction, improvement, and significant renovation of properties, which include capital replacements such as scheduled carpet replacement, new roofs, HVAC units, plumbing, concrete, masonry and other paving, pools and various exterior building improvements. We compute depreciation on a straight-line basis over the estimated useful lives of the related assets. Intangible assets are amortized to depreciation and amortization over the remaining lease term. The useful lives of our real estate assets are as follows (in years): Land improvements 5-15 Buildings 30 Building improvements 5-15 Furniture, fixtures and equipment 5-15 Intangible assets Over lease term We expense ordinary maintenance and repairs to operations as incurred. We capitalize significant renovations and improvements that improve and/or extend the useful life of an asset and amortize over their estimated useful life, generally five to 15 years. Impairment of long-lived assets Long-lived assets include real estate assets, acquired intangible assets, and real estate note investments. Intangible assets are amortized on a straight-line basis over their estimated useful lives. On an annual basis, we assess potential impairment indicators of long-lived assets. We also review for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Indicators that may cause an impairment review include, but are not limited to, significant under-performance relative to historical or projected future operating results and significant market or economic trends. When we determine the carrying value of a long-lived asset may not be recoverable based upon the existence of one or more of the above indicators, we determine recoverability by comparing the carrying amount of the asset to the net future undiscounted cash flows the asset is expected to generate. We recognize, if appropriate, an impairment charge equal to the amount by which the carrying amount exceeds the fair value of the asset. Investment in Unconsolidated Real Estate Entity Real estate investments where we have significant noncontrolling influence are accounted for under the equity method. Our equity method investment in an unconsolidated real estate entity is recorded at cost, adjusted for our share of equity in earnings for each period, and reduced by distributions. We assess potential impairment of investments in unconsolidated real estate entities whenever events or changes in circumstances indicate that the fair value of the investment is less than its carrying value. To the extent impairment has occurred, and is not considered temporary, the impairment is measured as the excess of the carrying amount of the investment over the fair value of the investment. No impairment losses were recognized for the year ended December 31, 2019 related to the Company's investment in an unconsolidated real estate entity. Evaluation of Acquisition, Construction and Development Investments We evaluate our note investments at the time of origination to determine whether these arrangements represent, in economic substance, an investment in real estate or a loan using the guidance for acquisition, development, and construction (“ADC”) arrangements. This includes evaluating the risks and rewards of each arrangement and the characteristics of an owner of real estate versus those of a lender. Real Estate Note Investment We carry our real estate note investment at amortized cost with an assessment made for impairment in the event recoverability of the principal amount becomes doubtful. If, upon testing for impairment, the fair value result of the real estate note investment or its collateral is lower than the carrying amount of the note, an allowance is recorded to lower the carrying amount to fair value, with a loss recorded in earnings. The amortized cost of our real estate note investment on the consolidated balance sheets consists of drawn amounts on the notes, net of unamortized costs and fees directly associated with the origination of the note. Costs we incur associated with originating real estate note investments are deferred and amortized on a straight-line basis, which approximates the effective interest method, over the term of the corresponding real estate note investment as an adjustment to interest income and are reflected on our consolidated statements of operations as real estate note investment interest. Interest income on our real estate note investment is recognized on an accrual basis over the life of the note and is being collected monthly. Rental and Other Property Revenues Revenue related to leases is recognized on an accrual basis when due from residents. Rental payments are generally due on a monthly basis and recognized on a straight-line basis over the noncancellable lease term because collection of the lease payments was probable at lease commencement. Our leases with residents may also provide that the resident reimburse us for certain costs, primarily the resident’s share of utilities expenses, incurred by the apartment community. These services represent non-lease components in a contract as we transfer a service to the lessee other than the right to use the underlying asset. We have elected the practical expedient under the GAAP leasing standard to not separate lease and non-lease components from our lease contracts as the timing and pattern of revenue recognition for the non-lease component and related lease component are the same and the combined single lease component would be classified as an operating lease.
Cash and cash equivalents	Cash and Cash Equivalents We consider all cash on deposit, money market funds and short-term investments with original maturities of three months or less to be cash and cash equivalents. Cash and cash equivalents consist of amounts the Company has on deposit with major commercial financial institutions.
Restricted Cash	Restricted Cash Restricted cash includes residents' security deposits, utility deposits, and escrow deposits held by the lender for property related items.
Preferred Stock	Preferred Stock Series 2019 Preferred Stock is described in Note 8
Debt Financing Costs	Debt Financing Costs Debt financing costs are presented as a direct deduction from the carrying amount of the associated liability, which includes our credit facility and preferred stock. Debt financing costs are amortized over the life of the related liability through interest expense.
Income Taxes	Income Taxes We intend to qualify as a REIT and to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, beginning with the year ending December 31, 2019. To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of our taxable income to our stockholders. As a REIT, we generally are not subject to federal corporate income tax on that portion of our taxable income that is currently distributed to stockholders. If we fail to qualify as a REIT in any taxable year, we will be subject to federal income tax on our taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost unless the Internal Revenue Service grants relief under certain statutory provisions. Such an event could materially and adversely affect our net income and net cash available for distribution to stockholders. However, we intend to organize and operate in such a manner as to qualify for treatment as a REIT.
Organization and Offering Costs	Organization and Offering CostsOrganization costs include all expenses incurred in connection with our formation, including but not limited to legal fees and other costs to incorporate the Company. Offering costs include all expenses incurred in connection with any offering of our shares, including legal, accounting, printing, mailing and filing fees, escrow charges and transfer agent fees, dealer manager fees and selling commissions. All organization and offering costs in connection with the Offering are paid by our advisor. We will not incur any liability for or reimburse our advisor for any of these organizational and offering costs related to the Offering. As of December 31, 2019, organization and offering costs incurred by our advisor in connection with the Offering were approximately $10,104,000. Organization and offering costs for the Private Offering are borne by us. As of December 31, 2019, organization and offering costs incurred by us in connection with the Private Offering were approximately $393,000.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Property, Plant and Equipment	The useful lives of our real estate assets are as follows (in years): Land improvements 5-15 Buildings 30 Building improvements 5-15 Furniture, fixtures and equipment 5-15 Intangible assets Over lease term The following table summarizes the carrying amounts of our consolidated real estate assets: December 31, 2019 Building and building improvements $ 52,466,583 Land and land improvements 10,658,155 Furniture, fixtures and equipment 2,015,778 Intangible assets 1,503,325 66,643,841 Less: Accumulated depreciation and amortization (2,738,190) Real estate assets, net $ 63,905,651 We had no real estate assets as of December 31, 2018.

Real Estate Assets, Net (Tables

Real Estate Assets, Net (Tables)	12 Months Ended
	Dec. 31, 2019
Business Combinations [Abstract]
Property, Plant and Equipment	The useful lives of our real estate assets are as follows (in years): Land improvements 5-15 Buildings 30 Building improvements 5-15 Furniture, fixtures and equipment 5-15 Intangible assets Over lease term The following table summarizes the carrying amounts of our consolidated real estate assets: December 31, 2019 Building and building improvements $ 52,466,583 Land and land improvements 10,658,155 Furniture, fixtures and equipment 2,015,778 Intangible assets 1,503,325 66,643,841 Less: Accumulated depreciation and amortization (2,738,190) Real estate assets, net $ 63,905,651 We had no real estate assets as of December 31, 2018.
Schedule of Asset Acquisitions	The following table summarizes the purchase price allocation of the real estate assets acquired during the year ended December 31, 2019: Allocated Amounts Property Building Land Land Improvements Personal Property Intangible Total Cottonwood West Palm $52,276,096 $9,379,895 $1,278,260 $2,015,778 $1,503,325 $66,453,354

Investments in Unconsolidated_2

Investments in Unconsolidated Real Estate (Tables)	12 Months Ended
	Dec. 31, 2019
Real Estate [Abstract]
Terms of Investment In Unconsolidated Real Estate	The primary terms of the Lector85 Investment are: Preferred Return (1) Latest Redemption Date (2) 13% August 15, 2024 (1) Rate will be reduced to an annualized rate of 10% upon either project stabilization, or one year following receipt of the project’s final certificate of occupancy, (whichever occurs later) and subject to satisfaction of loan-to-value and debt service coverage ratio covenants. (2) Subject to one twelve-month extension option, the Lector85 Investment cannot be redeemed earlier than two years after the receipt of all temporary certificate of occupancies. After that, it must be redeemed no later than the earlier of (i) the payment in full of the construction loan or (ii) the construction loan maturity date, which is August 15, 2022, subject to a two year extension option.

Fair Value Measures and Discl_2

Fair Value Measures and Disclosures (Tables)	12 Months Ended
	Dec. 31, 2019
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The table below includes the carrying value and fair value for our financial instruments for which it is practicable to estimate fair value: As of December 31, 2019 As of December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value Financial Asset: Real estate note investment $ 1,793,771 $ 1,793,771 $ — $ — Financial Liability: Credit Facility $ 35,995,000 $ 37,410,000 $ — $ — Series 2019 Preferred Stock $ 1,198,000 $ 1,198,000 $ — $ —

Preferred Stock (Tables)

Preferred Stock (Tables)	12 Months Ended
	Dec. 31, 2019
Equity [Abstract]
Schedule of Preferred Stock	Dividends to preferred stockholders are classified as interest expense on the consolidated statement of operations. Information on the outstanding series of preferred stock are as follows: Dividend Rate Extension Dividend Rate Redemption Date Shares Outstanding at December 31, 2019 Dividends for the Year Ended December 31, 2019 Series 2019 Preferred Stock 5.5% 6.0% December 31, 2023 119,800 $1,569

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Schedule of Repurchase Program Discounts	Upon the request of a holder of Series 2019 Preferred Stock, we may, at the sole discretion of the board of directors, repurchase their shares at the following prices, which are dependent on how long a redeeming stockholder has held each share: Share Purchase Anniversary Repurchase Price Less than 1 year $ 8.80 1 year $ 9.00 2 years $ 9.20 3 years $ 9.40 4 years $ 9.60 5 years $ 9.80 A stockholder’s death or complete disability, 2 years or more $ 10.00 Share Purchase Anniversary Repurchase Price as a Percentage of Estimated Value (1) Less than 1 year No repurchase allowed 1 year - 2 years 85 % 3 years - 4 years 90 % 5 years and thereafter 95 % A stockholder’s death or complete disability, less than 2 years 95 % A stockholder’s death or complete disability, 2 years or more 100 % (1) For the purposes of the share repurchase program, the “estimated value per share” will initially be equal to the purchase price per share at which the original purchaser or purchasers of the shares bought its shares from us, and the purchase price per share will be adjusted to reflect any stock dividends, combinations, splits, recapitalizations or any similar transaction with respect to the shares outstanding.

Quarterly Financial Informati_2

Quarterly Financial Information (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]
Summary of Quarterly Results	The following table presents our quarterly results: For the Three Months Ended March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Revenues Rental and other property revenues $ — $ 367,542 $ 1,180,972 $ 1,248,961 Real estate note investment interest — — 16,699 28,078 Total revenues — 367,542 1,197,671 1,277,039 Expenses Property operations expense — 222,641 661,181 545,103 Reimbursable operating expenses to related parties 125,000 125,485 148,906 142,261 Asset management fee to related party 19,783 137,942 296,126 357,544 Depreciation and amortization — 445,951 1,270,577 1,021,662 General and administrative expenses 118,160 134,198 210,700 413,750 Total operating expenses 262,943 1,066,217 2,587,490 2,480,320 Other income (expense) Equity in earnings of unconsolidated real estate entity — — — 272,805 Interest income 31,432 130,599 137,543 192,968 Interest expense — (134,636) (388,186) (393,804) Total other income (expense) 31,432 (4,037) (250,643) 71,969 Total expenses before asset management fee waiver (231,511) (1,070,254) (2,838,133) (2,408,351) Asset management fee waived by Advisor — — 310,484 99,319 Net expenses after asset management fee waiver (231,511) (1,070,254) (2,527,649) (2,309,032) Net loss $ (231,511) $ (702,712) $ (1,329,978) $ (1,031,993) Net loss per common share - basic and diluted $ (0.26) $ (0.18) $ (0.22) $ (0.12) For the Three Months Ended March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 Total revenues $ — $ — $ — $ — General and administrative expenses 963 1,109 — 98,137 Net loss $ (963) $ (1,109) $ — $ (98,137) Net loss per common share - basic and diluted $ (0.05) $ (0.06) $ — $ (1.45)

Subsequent Events (Tables)

Subsequent Events (Tables)	12 Months Ended
	Dec. 31, 2019
Subsequent Events [Abstract]
Summary of Distributions	Distributions paid to holders of our common stock subsequent to December 31, 2019 were as follows: Period Date Paid Daily Distribution Rate Annualized Rate (1) Amount December 1, 2019 - December 31, 2019 January 10, 2020 $ 0.00136986 5.0% $ 365,517 January 1, 2020 - January 31, 2020 February 10, 2020 $ 0.00136612 5.0% $ 382,935 February 1 - February 29, 2020 March 9, 2020 $ 0.00136612 5.0% $ 375,939 (1) Annualized rate is based on the $10.00 purchase price and assumes distributions are paid every day for a year at the daily distribution rate. Distributions Declared - Common Stock Our board of directors have declared cash distributions to holders of our common stock as follows: Period Daily Distribution Rate Annualized Rate (1) Expected Payment March 1 - March 31, 2020 $ 0.00136612 5.0% April 2020 April 1 - April 30, 2020 $ 0.00136612 5.0% May 2020 May 1 - May 31, 2020 $ 0.00136612 5.0% June 2020 (1) Annualized rate is based on the $10.00 purchase price and assumes distributions are paid every day for a year at the daily distribution rate. Dividends Paid - Preferred Stock Dividends paid to holders of our preferred stock subsequent to December 31, 2019 were as follows: Period Date Paid Daily Annualized Rate (1) Amount December 1, 2019 - December 31, 2019 January 10, 2020 $ 0.00150685 5.5% $ 1,569 January 1, 2020 - January 31, 2020 February 10, 2020 $ 0.00150273 5.5% $ 7,361 February 1 - February 29, 2020 March 9, 2020 $ 0.00150273 5.5% $ 17,466 (1) Annualized rate is based on the $10.00 purchase price and assumes dividends are paid every day for a year at the daily dividend rate. Dividends Declared - Preferred Stock Pursuant to the terms of the preferred stock, our board of directors have declared cash dividends to holders of our preferred stock as follows: Period Daily Annualized Rate (1) Expected Payment March 1 - March 31, 2020 $ 0.00150273 5.5% April 2020 April 1 - April 30, 2020 $ 0.00150273 5.5% May 2020 May 1 - May 31, 2020 $ 0.00150273 5.5% June 2020 (1) Annualized rate is based on the $10.00 purchase price and assumes dividends are paid every day for a year at the daily dividend rate.

Organization and Business (Deta

Organization and Business (Details)	Nov. 08, 2019USD ($)$ / shares	Aug. 13, 2018USD ($)$ / shares	Dec. 31, 2019USD ($)employeeclass$ / shares	Dec. 31, 2018USD ($)
Subsidiary, Sale of Stock [Line Items]
Number of employees | employee			0
Preferred stock issued, redeemable			$ 809,478	$ 0
Common stock, including additional paid in capital			88,062,000
2019 Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Preferred stock issued, redeemable			$ 1,198,000
IPO
Subsidiary, Sale of Stock [Line Items]
Aggregate value of shares offered (up to)		$ 750,000,000
Share price (in dollars per share) | $ / shares		$ 10
Number of classes of stock | class			2
Primary Offering
Subsidiary, Sale of Stock [Line Items]
Aggregate value of shares offered (up to)		$ 675,000,000
Distribution Reinvestment Plan
Subsidiary, Sale of Stock [Line Items]
Aggregate value of shares offered (up to)		$ 75,000,000
Share price (in dollars per share) | $ / shares			$ 10
Private Placement | 2019 Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Aggregate value of shares offered (up to)	$ 50,000,000
Share price (in dollars per share) | $ / shares	$ 10		$ 10

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details)	12 Months Ended
	Dec. 31, 2019USD ($)
Land Improvements | Minimum
Subsidiary, Sale of Stock [Line Items]
Real Estate Assets, Useful Lives	5
Land Improvements | Maximum
Subsidiary, Sale of Stock [Line Items]
Real Estate Assets, Useful Lives	15
Building
Subsidiary, Sale of Stock [Line Items]
Real Estate Assets, Useful Lives	30
Building Improvements | Minimum
Subsidiary, Sale of Stock [Line Items]
Real Estate Assets, Useful Lives	5
Building Improvements | Maximum
Subsidiary, Sale of Stock [Line Items]
Real Estate Assets, Useful Lives	15
Furniture and Fixtures | Minimum
Subsidiary, Sale of Stock [Line Items]
Real Estate Assets, Useful Lives	5
Furniture and Fixtures | Maximum
Subsidiary, Sale of Stock [Line Items]
Real Estate Assets, Useful Lives	15
Renovations and Improvements | Minimum
Subsidiary, Sale of Stock [Line Items]
Real Estate Assets, Useful Lives	five
Renovations and Improvements | Maximum
Subsidiary, Sale of Stock [Line Items]
Real Estate Assets, Useful Lives	15
Cottonwood Communities Management, LLC | IPO
Subsidiary, Sale of Stock [Line Items]
Offering costs incurred	$ 10,104,000
Cottonwood Communities Management, LLC | Private Placement
Subsidiary, Sale of Stock [Line Items]
Offering costs incurred	$ 393,000

Real Estate Assets, Net - Carry

Real Estate Assets, Net - Carrying Amount of Real Estate Assets (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Business Combinations [Abstract]
Building and building improvements	$ 52,466,583
Land and land improvements	10,658,155
Furniture, fixtures and equipment	2,015,778
Intangible assets	1,503,325
Real estate investment property, at cost	66,643,841
Less: Accumulated depreciation and amortization	(2,738,190)
Real estate assets, net	$ 63,905,651	$ 0

Real Estate Assets, Net - Asset

Real Estate Assets, Net - Asset Acquisitions (Details) - Cottonwood West Palm (formerly "Luma at West Palm Beach")	May 30, 2019USD ($)
Business Acquisition [Line Items]
Building	$ 52,276,096
Land	9,379,895
Land Improvements	1,278,260
Personal Property	2,015,778
Intangible	1,503,325
Total	$ 66,453,354

Real Estate Assets, Net - Narra

Real Estate Assets, Net - Narrative (Details) - Cottonwood West Palm (formerly "Luma at West Palm Beach") - USD ($)	May 30, 2019	Dec. 31, 2019
Business Acquisition [Line Items]
Payments for asset acquisitions	$ 66,923,500
Weighted average useful life of acquired intangible assets (in years)	6 months
Building Improvements
Business Acquisition [Line Items]
Capitalization of building improvements		$ 190,000

Investments in Unconsolidated_3

Investments in Unconsolidated Real Estate (Details) - Lector85 - Corporate Joint Venture - USD ($)	Aug. 15, 2019	Dec. 31, 2019
Real Estate [Line Items]
Preferred return	13.00%
Investment, redemption, special preferred return	$ 200,000
Investment income, interest		$ 272,805
Milhaus, LLC
Real Estate [Line Items]
Construction loan		34,000,000
Real estate investments, equity		9,300,000
Preferred Equity Investment
Real Estate [Line Items]
Investment, face amount, issued		$ 4,689,000
Investment, face amount	$ 9,900,000

Real Estate Note Investments (D

Real Estate Note Investments (Details)	12 Months Ended
	Dec. 31, 2019USD ($)extension	Jul. 31, 2019USD ($)
Common Equity Investment | Dolce Twin Creeks Phase 2
Real Estate [Line Items]
Real estate investments, equity	$ 17,900,000
Dolce B Note | Commercial Mortgage Backed Securities
Real Estate [Line Items]
Notes issued	1,794,000
Face amount of investment owned	$ 10,000,000
Number of extensions | extension	2
Term of extension (in years)	6 months
Dolce B Note | Commercial Mortgage Backed Securities | London Interbank Offered Rate (LIBOR)
Real Estate [Line Items]
Basis spread of variable rate	9.50%
Floor interest rate	12.00%
Dolce B Note | Commercial Mortgage Backed Securities | Dolce Twin Creeks Phase 2
Real Estate [Line Items]
Investment income, interest	$ 44,777
Dolce A Note | Commercial Mortgage Backed Securities | Dolce Twin Creeks Phase 2
Real Estate [Line Items]
Debt instrument, face amount		$ 45,500,000

Debt (Details)

Debt (Details)	May 30, 2019USD ($)
Debt Disclosure [Abstract]
Credit facility entered into in conjunction with acquisition of real estate	$ 35,995,000
Interest-only term	10 years
Fixed interest rate	3.93%
Loan-to-value ratio, maximum	65.00%

Fair Value Measures and Discl_3

Fair Value Measures and Disclosures (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Estimate of Fair Value Measurement
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Real estate note investment	$ 1,793,771	$ 0
Credit Facility	37,410,000	0
Series 2019 Preferred Stock	1,198,000	0
Reported Value Measurement
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Real estate note investment	1,793,771	0
Credit Facility	35,995,000	0
Series 2019 Preferred Stock	$ 1,198,000	$ 0

Preferred Stock (Details)

Preferred Stock (Details)	1 Months Ended	12 Months Ended
	Dec. 31, 2019USD ($)numbreOfAcres$ / sharesshares	Dec. 31, 2019USD ($)numbreOfAcres$ / sharesshares
Subsidiary, Sale of Stock [Line Items]
Annualized rate	5.50%
Distributions	$ 1,569
2019 Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Number of extensions | numbreOfAcres	2	2
Term of extension		1 year
Preferred stock, redemption price (in usd per share) | $ / shares	$ 10	$ 10
Annualized rate		5.50%
Extension Dividend Rate		6.00%
Preferred stock outstanding (in shares) | shares	119,800	119,800
Distributions		$ 1,569

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Nov. 08, 2019	Aug. 13, 2019
Subsidiary, Sale of Stock [Line Items]
Shares of capital stock authorized (in shares)	1,100,000,000
Shares of common stock authorized (in shares)	1,000,000,000
Common stock, par value (in dollars per share)	$ 0.01
Shares of preferred stock authorized (in shares)	100,000,000
Preferred stock, par value (in dollars per share)	$ 0.01
Common stock, shares outstanding (in shares)	8,851,759	366,654
Payments of Ordinary Dividends, Common Stock	$ 1,602,472	$ 0
Issuance of common stock through dividend reinvestment program	401,603	0
Common stock distributions declared but not yet paid	$ 365,517	$ 0
Distributions per common share (in usd per share)	$ 0.50
Aggregate distributions	$ 2,004,075
2019 Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Shares of preferred stock authorized (in shares)			5,000,000
Common Class A
Subsidiary, Sale of Stock [Line Items]
Shares of common stock authorized (in shares)				500,000,000
Common stock, shares outstanding (in shares)	8,851,759
Common Class A | Distribution Reinvestment Plan
Subsidiary, Sale of Stock [Line Items]
Stock issued during period through dividend reinvestment plan (in shares)	40,160
Common Class A | CROP
Subsidiary, Sale of Stock [Line Items]
Common stock, shares outstanding (in shares)	20,000
Common Class T
Subsidiary, Sale of Stock [Line Items]
Shares of common stock authorized (in shares)				500,000,000

Related-Party Transactions (Det

Related-Party Transactions (Details)	12 Months Ended
	Dec. 31, 2019USD ($)
Related Party Transaction [Line Items]
Percentage threshold operating expenses must exceed average invested assets to be reimbursable	2.00%
Percentage threshold operating expenses must exceed net income to be reimbursable	25.00%
Cumulative, non-compounded annual return on invested capital to be received (as a percent)	6.00%
Affiliated Entity
Related Party Transaction [Line Items]
Annual asset management fee (as a percent)	1.25%
Asset Management Fees	$ 811,395
Asset Management Fee, Percent Fee Waived	6.00%
Asset Management Fees Waived	$ 409,803
Director | Independent Director Compensation, Annual Retainer
Related Party Transaction [Line Items]
Expenses from transactions with related parties	10,000
Director | Independent Director Compensation, Compensation Per Board Meeting
Related Party Transaction [Line Items]
Expenses from transactions with related parties	500
Director | Independent Director Compensation, Compensation Per Committee Meeting
Related Party Transaction [Line Items]
Expenses from transactions with related parties	$ 500
Cottonwood Communities Management, LLC | Affiliated Entity
Related Party Transaction [Line Items]
Contingent acquisition fee	1.00%
Shareholders' required return to receive contingent acquisition fee	6.00%
Additional contingent acquisition fee	2.00%
Shareholders' required return to receive additional contingent acquisition fee	13.00%
Contingent acquisition fee to be paid to advisor upon termination (as a percent)	3.00%
Contingent financing fee (as a percent)	1.00%
Property management fee (as a percent)	3.50%
Property management fees	$ 97,877
Cottonwood Communities Management, LLC | Limited Partner
Related Party Transaction [Line Items]
Promotional interest	15.00%

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details)	12 Months Ended
	Dec. 31, 2019USD ($)$ / shares	Oct. 25, 2019a	Aug. 15, 2019USD ($)
Subsidiary, Sale of Stock [Line Items]
Percentage of weighted average number of shares of common stock outstanding authorized for repurchase	5.00%
Distribution Reinvestment Plan
Subsidiary, Sale of Stock [Line Items]
Share price (in dollars per share) | $ / shares	$ 10
Common Equity Investment | Dolce Twin Creeks Phase 2
Subsidiary, Sale of Stock [Line Items]
Real estate investments, equity	$ 17,900,000
Dolce B Note | Commercial Mortgage Backed Securities
Subsidiary, Sale of Stock [Line Items]
Term of extension (in years)	6 months
Dolce B Note | Commercial Mortgage Backed Securities | Dolce Twin Creeks Phase 2
Subsidiary, Sale of Stock [Line Items]
Unused borrowing capacity	$ 8,206,000
Corporate Joint Venture | Lector85 | Preferred Equity Investment
Subsidiary, Sale of Stock [Line Items]
Remaining investment amount	5,211,000
Investment, face amount			$ 9,900,000
Corporate Joint Venture | 2980 Huron
Subsidiary, Sale of Stock [Line Items]
Number of acres | a		0.84
Corporate Joint Venture | 2980 Huron | Preferred Equity Investment
Subsidiary, Sale of Stock [Line Items]
Investment, face amount	20,000,000
Construction loan	$ 65,400,000
Annual return	12.00%
Term of extension (in years)	1 year
Underwriting fee	1.00%
Exit fees	0.50%
Corporate Joint Venture | 2980 Huron | Common Equity Investment
Subsidiary, Sale of Stock [Line Items]
Real estate investments, equity	$ 17,500,000

Commitments and Contingencies_2

Commitments and Contingencies - Distribution Reinvestment Plan (Details)	Dec. 31, 2019$ / shares
Distribution Reinvestment Plan
Subsidiary, Sale of Stock [Line Items]
Share price (in dollars per share)	$ 10

Commitments and Contingencies_3

Commitments and Contingencies - Share Repurchase Program (Details) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Percentage of weighted average number of shares of common stock outstanding authorized for repurchase	5.00%
Share Repurchase Program [Line Items]
Number of shares redeemed (in shares)	0	0
Period of notice required for repurchase program termination	15 days
Less than 1 year
Share Repurchase Program [Line Items]
Repurchase price (in usd per share)	$ 8.80
1 year
Share Repurchase Program [Line Items]
Repurchase price (in usd per share)	9
2 years
Share Repurchase Program [Line Items]
Repurchase price (in usd per share)	9.20
3 years
Share Repurchase Program [Line Items]
Repurchase price (in usd per share)	9.40
4 years
Share Repurchase Program [Line Items]
Repurchase price (in usd per share)	9.60
5 years
Share Repurchase Program [Line Items]
Repurchase price (in usd per share)	$ 9.80
1 year - 2 years
Share Repurchase Program [Line Items]
Repurchase price as a percentage of estimated value	85.00%
3 years - 4 years
Share Repurchase Program [Line Items]
Repurchase price as a percentage of estimated value	90.00%
5 years and thereafter
Share Repurchase Program [Line Items]
Repurchase price as a percentage of estimated value	95.00%
A stockholder’s death or complete disability, less than 2 years
Share Repurchase Program [Line Items]
Repurchase price as a percentage of estimated value	95.00%
A stockholder’s death or complete disability, 2 years or more
Share Repurchase Program [Line Items]
Repurchase price (in usd per share)	$ 10
Repurchase price as a percentage of estimated value	100.00%

Quarterly Financial Informati_3

Quarterly Financial Information (Unaudited) (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
Rental and other property revenues	$ 1,248,961	$ 1,180,972	$ 367,542	$ 0					$ 2,797,475	$ 0
Real estate note investment interest	28,078	16,699	0	0					44,777	0
Total revenues	1,277,039	1,197,671	367,542	0	$ 0	$ 0	$ 0	$ 0	2,842,252	0
Property operations expense	545,103	661,181	222,641	0					1,428,925	0
Reimbursable operating expenses to related parties	142,261	148,906	125,485	125,000					541,652	0
Asset management fee to related party	357,544	296,126	137,942	19,783					811,395	0
Depreciation and amortization	1,021,662	1,270,577	445,951	0					2,738,190	0
General and administrative expenses	413,750	210,700	134,198	118,160	98,137	0	1,109	963	876,808	100,209
Total operating expenses	2,480,320	2,587,490	1,066,217	262,943					6,396,970	100,209
Equity in earnings of unconsolidated real estate entity	272,805	0	0	0					272,805	0
Interest income	192,968	137,543	130,599	31,432					492,542	0
Interest expense	(393,804)	(388,186)	(134,636)	0					(916,626)	0
Total other expense	71,969	(250,643)	(4,037)	31,432					(151,279)	0
Total expenses before asset management fee waiver	(2,408,351)	(2,838,133)	(1,070,254)	(231,511)					(6,548,249)	(100,209)
Asset management fee waived by Advisor	99,319	310,484	0	0					409,803	0
Net expenses after asset management fee waiver	(2,309,032)	(2,527,649)	(1,070,254)	(231,511)					(6,138,446)	(100,209)
Net loss	$ 1,031,993	$ 1,329,978	$ 702,712	$ 231,511	$ 98,137	$ 0	$ 1,109	$ 963	$ 3,296,194	$ 100,209
Net loss per share, basic and diluted (in dollars per share)	$ (0.12)	$ (0.22)	$ (0.18)	$ (0.26)	$ (1.45)	$ 0	$ (0.06)	$ (0.05)	$ (0.70)	$ (3.13)

Subsequent Events - Additional

Subsequent Events - Additional Information (Details)	Mar. 25, 2020USD ($)$ / shares	Mar. 20, 2020USD ($)shares	Mar. 19, 2020USD ($)ft²	May 30, 2019USD ($)	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Subsequent Event [Line Items]
Payments to acquire real estate					$ 31,171,298	$ 0
Credit facility entered into in conjunction with acquisition of real estate				$ 35,995,000
Maximum borrowing capacity					$ 67,600,000
Subsequent event
Subsequent Event [Line Items]
Proceeds from public offering		$ 99,763,225
Subsequent event | LTIP
Subsequent Event [Line Items]
Grants awarded to officers, value	$ 124,380
Annual vesting percentage	25.00%
Performance based award, target amount	$ 373,120
Share price (in shares) | $ / shares	$ 10
Subsequent event | Lector85 | Corporate Joint Venture | Milhaus, LLC
Subsequent Event [Line Items]
Minimum cumulative return upon redemption			35.00%
Subsequent event | One Upland
Subsequent Event [Line Items]
Payments to acquire real estate			$ 103,600,000
Net rentable area | ft²			303,840
Credit facility entered into in conjunction with acquisition of real estate			$ 50,000,000
Subsequent event | Common Class A
Subsequent Event [Line Items]
Number of shares issued and sold (in shares) | shares		10,025,160
Subsequent event | Common Class T
Subsequent Event [Line Items]
Number of shares issued and sold (in shares) | shares		2,500
Subsequent event | Distribution Reinvestment Plan
Subsequent Event [Line Items]
Number of shares issued and sold (in shares) | shares		63,893
Proceeds from public offering		$ 638,926
Subsequent event | Private Placement
Subsequent Event [Line Items]
Proceeds from public offering		8,263,329
Stock issuance costs		537,633
Private placement fees		$ 162,403
Subsequent event | Private Placement | 2019 Preferred Stock
Subsequent Event [Line Items]
Number of shares issued and sold (in shares) | shares		830,099

Subsequent Events - Distributio

Subsequent Events - Distributions (Details) - USD ($)	1 Months Ended						12 Months Ended
	May 31, 2020	Apr. 30, 2020	Mar. 31, 2020	Feb. 29, 2020	Jan. 31, 2020	Dec. 31, 2019	Dec. 31, 2019	Nov. 08, 2019
Subsequent Event [Line Items]
Common stock, dividend rate (in dollars per share)						$ 0.00136986
Annualized rate						5.00%
Distributions						$ 365,517
Preferred stock, dividend rate (in dollars per share)						$ 0.00150685
Annualized rate						5.50%
Distributions						$ 1,569
2019 Preferred Stock
Subsequent Event [Line Items]
Annualized rate							5.50%
Distributions							$ 1,569
Forecast
Subsequent Event [Line Items]
Common stock, dividend rate (in dollars per share)	$ 0.00136612	$ 0.00136612	$ 0.00136612
Annualized rate	5.00%	5.00%	5.00%
Preferred stock, dividend rate (in dollars per share)	$ 0.00150273	$ 0.00150273	$ 0.00150273
Annualized rate	5.50%	5.50%	5.50%
Distribution Reinvestment Plan
Subsequent Event [Line Items]
Share price (in dollars per share)						$ 10	$ 10
Private Placement | 2019 Preferred Stock
Subsequent Event [Line Items]
Share price (in dollars per share)						10	10	$ 10
Primary Offering | Common Class A
Subsequent Event [Line Items]
Share price (in dollars per share)						$ 10	$ 10
Subsequent event
Subsequent Event [Line Items]
Common stock, dividend rate (in dollars per share)				$ 0.00136612	$ 0.00136612
Annualized rate				5.00%	5.00%
Distributions				$ 375,939	$ 382,935
Preferred stock, dividend rate (in dollars per share)				$ 0.00150273	$ 0.00150273
Annualized rate				5.50%	5.50%
Distributions				$ 17,466	$ 7,361