Cottonwood Communities 10-Q 13 Nov 20 2020 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2020	Nov. 10, 2020
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
Document Transition Report	false
Entity File Number	000-56165
Entity Registrant Name	Cottonwood Communities, Inc.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	61-1805524
Entity Address, Address Line One	6340 South 3000 East
Entity Address, Address Line Two	Suite 500
Entity Address, City or Town	Salt Lake City
Entity Address, State or Province	UT
Entity Address, Postal Zip Code	84121
City Area Code	801
Local Phone Number	278-0700
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
Entity Central Index Key	0001692951
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false
Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		11,799,847
Class T
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		17,516

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Assets
Real estate assets, net	$ 162,382,984	$ 63,905,651
Investments in unconsolidated real estate entities	26,446,293	4,961,868
Real estate note investment, net	6,796,623	2,059,309
Cash and cash equivalents	7,775,107	47,549,804
Restricted cash	281,159	192,190
Related party receivables	61,109	0
Other assets	1,099,839	707,524
Total assets	204,843,114	119,376,346
Liabilities
Credit facilities, net	83,261,231	34,990,146
Preferred stock, net	18,525,195	809,478
Related party payables	319,756	287,561
Accounts payable, accrued expenses and other liabilities	3,923,465	992,689
Total liabilities	106,029,647	37,079,874
Commitments and contingencies (Note 11)
Stockholders' equity
Common Stock, Value, Issued	115,758	88,518
Additional paid-in capital	115,125,935	87,973,949
Accumulated distributions	(6,275,555)	(2,369,592)
Accumulated deficit	(10,152,671)	(3,396,403)
Total stockholders' equity	98,813,467	82,296,472
Total liabilities and stockholders' equity	$ 204,843,114	$ 119,376,346

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	11,575,766	8,851,759
Common stock, shares outstanding (in shares)	11,575,766	8,851,759

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenues
Rental and other property revenues	$ 3,054,823	$ 1,180,972	$ 7,605,791	$ 1,548,514
Real estate note investment interest	171,746	16,699	360,874	16,699
Total revenues	3,226,569	1,197,671	7,966,665	1,565,213
Expenses
Property operations expense	1,358,507	661,181	3,282,037	883,822
Reimbursable operating expenses to related parties	263,915	148,906	732,998	399,391
Asset management fee to related party	811,233	296,126	1,941,542	453,851
Depreciation and amortization	2,295,445	1,270,577	5,629,247	1,716,528
General and administrative expenses	1,534,590	210,700	2,315,303	463,058
Total operating expenses	6,263,690	2,587,490	13,901,127	3,916,650
Other (expense) income
Income (Loss) from Equity Method Investments	708,067	0	1,273,488	0
Interest income	6,887	137,543	196,821	299,574
Interest expense	(1,045,464)	(388,186)	(2,480,448)	(522,822)
Nonoperating Income (Expense), Total	(330,510)	(250,643)	(1,010,139)	(223,248)
Total expenses before asset management fee waiver	(6,594,200)	(2,838,133)	(14,911,266)	(4,139,898)
Asset management fee waived by Advisor	48,543	310,484	188,333	310,484
Net expenses after asset management fee waiver	(6,545,657)	(2,527,649)	(14,722,933)	(3,829,414)
Net loss	$ (3,319,088)	$ (1,329,978)	$ (6,756,268)	$ (2,264,201)
Weighted-average shares outstanding (in shares)	11,225,384	6,091,617	10,412,719	3,613,382
Net loss per common share - basic and diluted (in dollars per share)	$ (0.30)	$ (0.22)	$ (0.65)	$ (0.63)

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity - USD ($)	Total	Common Stock	Additional Paid-In Capital	Accumulated Distributions	Accumulated Deficit
Shares outstanding, beginning balance (in shares) at Dec. 31, 2018		366,654
Stockholders' equity, beginning 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)		1,523,319
Issuance of common stock	15,201,915	$ 15,233	15,186,682
Distributions to investors	(58,045)			(58,045)
Net loss	(231,511)				(231,511)
Shares outstanding, ending balance (in shares) at Mar. 31, 2019		1,889,973
Stockholders' equity, ending balance at Mar. 31, 2019	18,478,050	$ 18,900	18,848,915	(58,045)	(331,720)
Shares outstanding, beginning balance (in shares) at Dec. 31, 2018		366,654
Stockholders' equity, beginning balance at Dec. 31, 2018	3,565,691	$ 3,667	3,662,233	0	(100,209)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(2,264,201)
Shares outstanding, ending balance (in shares) at Sep. 30, 2019		7,090,194
Stockholders' equity, ending balance at Sep. 30, 2019	66,828,654	$ 70,902	70,484,942	(1,362,780)	(2,364,410)
Shares outstanding, beginning balance (in shares) at Mar. 31, 2019		1,889,973
Stockholders' equity, beginning balance at Mar. 31, 2019	18,478,050	$ 18,900	18,848,915	(58,045)	(331,720)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)		3,169,474
Issuance of common stock	31,556,816	$ 31,695	31,525,121
Distributions to investors	(537,172)			(537,172)
Net loss	(702,712)				(702,712)
Shares outstanding, ending balance (in shares) at Jun. 30, 2019		5,059,447
Stockholders' equity, ending balance at Jun. 30, 2019	48,794,982	$ 50,595	50,374,036	(595,217)	(1,034,432)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)		2,030,747
Issuance of common stock	20,131,213	$ 20,307	20,110,906
Distributions to investors	(767,563)			(767,563)
Net loss	(1,329,978)				(1,329,978)
Shares outstanding, ending balance (in shares) at Sep. 30, 2019		7,090,194
Stockholders' equity, ending balance at Sep. 30, 2019	$ 66,828,654	$ 70,902	70,484,942	(1,362,780)	(2,364,410)
Shares outstanding, beginning balance (in shares) at Dec. 31, 2019	8,851,759	8,851,759
Stockholders' equity, beginning balance at Dec. 31, 2019	$ 82,296,472	$ 88,518	87,973,949	(2,369,592)	(3,396,403)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)		1,304,712
Issuance of common stock	12,976,744	$ 13,047	12,963,697
Distributions to investors	(1,183,119)			(1,183,119)
Net loss	(790,050)				(790,050)
Shares outstanding, ending balance (in shares) at Mar. 31, 2020		10,156,471
Stockholders' equity, ending balance at Mar. 31, 2020	$ 93,300,047	$ 101,565	100,937,646	(3,552,711)	(4,186,453)
Shares outstanding, beginning balance (in shares) at Dec. 31, 2019	8,851,759	8,851,759
Stockholders' equity, beginning balance at Dec. 31, 2019	$ 82,296,472	$ 88,518	87,973,949	(2,369,592)	(3,396,403)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	$ (6,756,268)
Shares outstanding, ending balance (in shares) at Sep. 30, 2020	11,575,766	11,575,766
Stockholders' equity, ending balance at Sep. 30, 2020	$ 98,813,467	$ 115,758	115,125,935	(6,275,555)	(10,152,671)
Shares outstanding, beginning balance (in shares) at Mar. 31, 2020		10,156,471
Stockholders' equity, beginning balance at Mar. 31, 2020	93,300,047	$ 101,565	100,937,646	(3,552,711)	(4,186,453)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)		709,841
Issuance of common stock	7,049,365	$ 7,098	7,042,267
Share based compensation	27,000		27,000
Distributions to investors	(1,309,923)			(1,309,923)
Net loss	(2,647,130)				(2,647,130)
Shares outstanding, ending balance (in shares) at Jun. 30, 2020		10,866,312
Stockholders' equity, ending balance at Jun. 30, 2020	96,419,359	$ 108,663	108,006,913	(4,862,634)	(6,833,583)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)		740,761
Issuance of common stock	7,372,730	$ 7,408	7,365,322
Common stock repurchases (in shares)		(31,307)
Common stock repurchases	(268,613)	$ (313)	(268,300)
Share based compensation	22,000		22,000
Distributions to investors	(1,412,921)			(1,412,921)
Net loss	$ (3,319,088)				(3,319,088)
Shares outstanding, ending balance (in shares) at Sep. 30, 2020	11,575,766	11,575,766
Stockholders' equity, ending balance at Sep. 30, 2020	$ 98,813,467	$ 115,758	$ 115,125,935	$ (6,275,555)	$ (10,152,671)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net loss	$ (6,756,268)	$ (2,264,201)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	5,629,247	1,716,528
Equity in earnings	(1,273,488)	0
Amortization of real estate note investment issuance cost	36,547	0
Amortization of debt issuance costs	154,606	35,570
Noncash interest expense on preferred stock	270,216	0
Share based compensation	49,000	0
Changes in operating assets and liabilities:
Related party receivables	(61,109)	(312,846)
Other assets	(311,215)	1,413
Related party payables	32,195	302,861
Accounts payable, accrued expenses and other liabilities	2,405,626	713,126
Net cash provided by operating activities	175,357	192,451
Cash flows from investing activities:
Acquisitions of real estate	(53,904,597)	(31,171,298)
Capital improvements to real estate	(164,178)	(73,186)
Investments in unconsolidated real estate entities	(20,210,937)	0
Issuance of real estate note investment including issuance costs	(4,773,861)	(1,119,994)
Net cash used in investing activities	(79,053,573)	(32,364,478)
Cash flows from financing activities:
Proceeds from line of credit	12,000,000	0
Repayments of line of credit	(13,500,000)	0
Proceeds from issuance of preferred stock, net of issuance costs	17,445,501	0
Proceeds from issuance of common stock	26,512,608	66,377,134
Common stock repurchases	(268,613)	0
Distributions to common stockholders	(2,997,008)	(874,358)
Net cash provided by financing activities	39,192,488	65,502,776
Net (decrease) increase in cash and cash equivalents and restricted cash	(39,685,728)	33,330,749
Cash and cash equivalents and restricted cash, beginning of period	47,741,994	3,406,175
Cash and cash equivalents and restricted cash, end of period	8,056,266	36,736,924
Reconciliation of cash and cash equivalents and restricted cash to the condensed consolidated balance sheets:
Total cash and cash equivalents and restricted cash	8,056,266	36,736,924
Supplemental disclosure of non-cash investing and financing activities:
Credit facilities entered into in conjunction with acquisition of real estate	$ 49,616,479	$ 35,995,000

Organization and Business

Organization and Business	9 Months Ended
	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Business	Organization and Business Cottonwood Communities, Inc. is a Maryland corporation formed to invest in multifamily apartment communities and real estate related assets located throughout the United States. The Company elected to be taxed as a real estate investment trust or REIT beginning with the taxable year ending December 31, 2019. The Company holds real estate interests and conducts its business through its operating partnership, Cottonwood Communities O.P., LP (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 are externally managed and have no employees. CC Advisors III, LLC is our advisor. Cottonwood Communities Management, LLC is the property manager for our stabilized multifamily apartment communities. We are offering $750,000,000 in shares of common stock in an initial public offering (the “Offering”), made up of $675,000,000 in shares through our primary offering and $75,000,000 in shares through our distribution reinvestment plan (the "DRP Program”) at a purchase price of $10.00 per share (with discounts available to certain categories of purchasers in the primary offering) in both offerings. Our 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. 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. We are also 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 in a private offering (the "Private Offering"). Offering-related expenses in the Private Offering are paid by us. At September 30, 2020, we owned two multifamily apartment communities, one in West Palm Beach, Florida and the second in the Greater Boston, Massachusetts area; have issued a B Note secured by a deed of trust on a multifamily development project in Allen, Texas; have made two preferred equity investments in multifamily development projects, one in Ybor City, Florida and the second in the Astoria neighborhood of Queens, New York; and have entered into an agreement to provide a preferred equity investment for a multifamily development project in Denver, Colorado. COVID-19 Pandemic One of the most significant risks and uncertainties facing the real estate industry generally continues to be the effect of the ongoing public health crisis of the novel coronavirus disease (COVID-19) pandemic. During the nine months ended September 30, 2020, we did not experience significant disruptions in our operations from the COVID-19 pandemic; however we continue to closely monitor the impact of the COVID-19 pandemic on all aspects of our business, including how the pandemic will impact our tenants and multifamily communities.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The accompanying condensed 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”) for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The condensed consolidated financial statements, including the condensed notes thereto, are unaudited and exclude some of the disclosures required in audited financial statements. The condensed consolidated balance sheet as of December 31, 2019 has been derived from the Company’s audited financial statements as of that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments and eliminations, consisting only of normal recurring adjustments necessary for a fair presentation in conformity with GAAP. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in our Annual Report on Form 10-K for the period ending December 31, 2019 filed with the SEC. The accompanying condensed consolidated financial statements include the accounts of the Company and its subsidiaries for which we have a controlling interest. All intercompany balances and transactions have been eliminated in consolidation. Organization and Offering Costs All organization and offering costs in connection with the offering of our common stock are paid by our advisor. We will not incur any liability for or reimburse our advisor for any of these organizational and offering costs. As of September 30, 2020, our advisor incurred approximately $13,341,000 in organizational and offering costs from the issuance of common stock.

Real Estate Assets, Net

Real Estate Assets, Net	9 Months Ended
	Sep. 30, 2020
Business Combinations [Abstract]
Real Estate Assets, Net	Real Estate Assets, Net The following table summarizes the carrying amounts of our consolidated real estate assets: September 30, 2020 December 31, 2019 Building and building improvements $ 134,776,296 $ 52,466,583 Land and land improvements 28,182,025 10,658,155 Furniture, fixtures and equipment 3,983,344 2,015,778 Intangible assets 3,808,756 1,503,325 170,750,421 66,643,841 Less: Accumulated depreciation and amortization (8,367,437) (2,738,190) Real estate assets, net $ 162,382,984 $ 63,905,651 Asset acquisition On March 19, 2020, we acquired Cottonwood One Upland, a multifamily community in the Greater Boston area for $103,600,000, excluding closing costs. We funded the purchase with an initial draw of $50,000,000 from our $67,600,000 credit facility with JP Morgan and proceeds from our offerings. Acquired assets and liabilities were recorded at relative fair value as an asset acquisition. The following table summarizes the purchase price allocation of the real estate assets acquired during the nine months ended September 30, 2020: Allocated Amounts Property Building Land Land Improvements Personal Property Intangible Total Cottonwood One Upland $ 82,145,536 $ 14,514,535 $ 3,009,335 $ 1,967,566 $ 2,305,430 $ 103,942,402

Investments in Unconsolidated R

Investments in Unconsolidated Real Estate Entities	9 Months Ended
	Sep. 30, 2020
Real Estate [Abstract]
Investments in Unconsolidated Real Estate Entities	Investments in Unconsolidated Real Estate Entities Lector85 Investment During the nine months ended September 30, 2020, we contributed $5,210,937 to our joint venture with Milhaus, LLC for the development of Lector85, a 254-unit multifamily project in Ybor City, Florida. This constituted the remaining amount of our $9,900,000 commitment. During the three and nine months ended September 30, 2020, we recorded equity in earnings of $328,900 and $894,321, respectively, from the Lector85 Investment under the hypothetical liquidation book value method. Vernon Boulevard Investment On July 24, 2020, we and a publicly-traded multifamily REIT (the “Preferred Co-Investor”) made a preferred equity investment in an entity that is developing a three-building multifamily apartment community in the Astoria neighborhood of Queens, New York (the “Project”). Our preferred contribution was $15,000,000 (the “Vernon Boulevard Investment”). The Preferred Co-Investor contributed $40,000,000. In connection with our investment, we entered a joint venture agreement with the Preferred Co-Investor as well as an entity owned by a New York-based real estate development, investment and management firm (the “Developer”) and a foreign fund. The Developer contributed approximately $62,000,000 in common equity and is the manager of the joint venture. Pursuant to the terms of the joint venture agreement, the Vernon Boulevard Investment has a preferred return of 13% per annum and receives a profit participation upon a liquidity event, pari passu alongside the preferred equity contribution from the Preferred Co-Investor. Decisions of the members require approval of a majority in interest of the preferred equity holders and a majority in interest of the common holders. The Vernon Boulevard Investment has an expected redemption of July 2025 and is senior to the common equity. Additional funding for the Project will come from a $225,000,000 construction loan. The total development cost is estimated to be $342,000,000. The $15,000,000 investment constitutes the full amount of our commitment. During the three and nine months ended September 30, 2020, we recorded equity in earnings of $379,167 from the Vernon Boulevard Investment under the hypothetical liquidation book value method.

Real Estate Note Investment

Real Estate Note Investment	9 Months Ended
	Sep. 30, 2020
Real Estate [Abstract]
Real Estate Note Investment	Investments in Unconsolidated Real Estate Entities Lector85 Investment During the nine months ended September 30, 2020, we contributed $5,210,937 to our joint venture with Milhaus, LLC for the development of Lector85, a 254-unit multifamily project in Ybor City, Florida. This constituted the remaining amount of our $9,900,000 commitment. During the three and nine months ended September 30, 2020, we recorded equity in earnings of $328,900 and $894,321, respectively, from the Lector85 Investment under the hypothetical liquidation book value method. Vernon Boulevard Investment On July 24, 2020, we and a publicly-traded multifamily REIT (the “Preferred Co-Investor”) made a preferred equity investment in an entity that is developing a three-building multifamily apartment community in the Astoria neighborhood of Queens, New York (the “Project”). Our preferred contribution was $15,000,000 (the “Vernon Boulevard Investment”). The Preferred Co-Investor contributed $40,000,000. In connection with our investment, we entered a joint venture agreement with the Preferred Co-Investor as well as an entity owned by a New York-based real estate development, investment and management firm (the “Developer”) and a foreign fund. The Developer contributed approximately $62,000,000 in common equity and is the manager of the joint venture. Pursuant to the terms of the joint venture agreement, the Vernon Boulevard Investment has a preferred return of 13% per annum and receives a profit participation upon a liquidity event, pari passu alongside the preferred equity contribution from the Preferred Co-Investor. Decisions of the members require approval of a majority in interest of the preferred equity holders and a majority in interest of the common holders. The Vernon Boulevard Investment has an expected redemption of July 2025 and is senior to the common equity. Additional funding for the Project will come from a $225,000,000 construction loan. The total development cost is estimated to be $342,000,000. The $15,000,000 investment constitutes the full amount of our commitment. During the three and nine months ended September 30, 2020, we recorded equity in earnings of $379,167 from the Vernon Boulevard Investment under the hypothetical liquidation book value method.

Credit Facility

Credit Facility	9 Months Ended
	Sep. 30, 2020
Debt Disclosure [Abstract]
Credit Facilities	Credit Facilities We have a credit facility agreement with Berkadia Commercial Mortgage, LLC (the "Berkadia Credit Facility"), for which we have an advance of $35,995,000 secured by Cottonwood West Palm. The advance is interest-only until maturity and bears a fixed interest rate of 3.93%. The advance matures on May 30, 2029 and can be prepaid subject to certain fees and conditions. There is no limit on the amount that we can draw on the Berkadia Credit Facility so long as we maintain the loan-to-value ratio and other requirements set forth in the loan documents. On March 19, 2020, in conjunction with the acquisition of Cottonwood One Upland, we entered a secured revolving credit facility agreement with J.P. Morgan Chase Bank, N.A., an unaffiliated lender (the “JP Morgan Credit Facility”). Pursuant to the terms of the JP Morgan Credit Facility, we may obtain advances secured against Cottonwood One Upland up to the amount of $67,600,000, subject to certain debt service coverage ratio requirements. Upon the closing of Cottonwood One Upland, our initial advance was $50,000,000. During the three months ended September 30, 2020, our total borrowings on this credit facility decreased to $48,500,000. The JP Morgan Credit Facility has an initial maturity date of March 19, 2023 with the option to extend for two one-year periods subject to the satisfaction of certain conditions set forth in the loan agreement. The advances carry an interest-only term and bear floating interest rates of 1-month LIBOR plus a spread ranging from 1.50% to 1.75%, depending on certain debt yield metrics set forth in the loan agreement and as evidenced by a promissory note. We have the right to prepay all or a portion of the JP Morgan Credit Facility at any time subject to certain conditions contained in the loan documents. We may finance other future acquisitions through the JP Morgan Credit Facility. The aggregate loan-to-value ratio for all advances made with respect to the JP Morgan Credit Facility cannot exceed 65% at the time any advance is made. The limit on the amount that we can borrow under the JP Morgan Credit Facility is $125,000,000 so long as we maintain the loan-to-value and debt coverage ratios, and other requirements set forth in the JP Morgan Credit Facility loan documents. Each advance will be cross-collateralized with the other advances. The JP Morgan Credit Facility permits us to sell the multifamily apartment communities that are secured by the JP Morgan Credit Facility individually provided that certain loan-to-value and debt coverage ratios, and other requirements, are met. We were in compliance with all covenants associated with our outstanding credit facilities as of September 30, 2020.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	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 September 30, 2020 and 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 September 30, 2020 As of December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value Financial Asset: Real estate note investment $ 6,735,530 $ 6,735,530 $ 1,793,771 $ 1,793,771 Financial Liability: Berkadia Credit Facility $ 35,995,000 $ 39,603,000 $ 35,995,000 $ 37,410,000 JP Morgan Credit Facility $ 48,500,000 $ 48,500,000 $ — $ — Series 2019 Preferred Stock $ 20,561,909 $ 20,561,909 $ 1,198,000 $ 1,198,000

Preferred Stock

Preferred Stock	9 Months Ended
	Sep. 30, 2020
Equity [Abstract]
Preferred Stock	Preferred Stock The Series 2019 Preferred Stock has a fixed redemption date and is classified as a liability on the condensed consolidated balance sheet. Dividends to preferred stockholders, paid at an annual rate of 5.5%, are classified as interest expense on the condensed consolidated statement of operations. During the nine months ended September 30, 2020 we raised approximately $19,364,000 of Series 2019 Preferred Stock. We incurred approximately $451,000 in dividends on our Series 2019 Preferred Stock for the nine months ended September 30, 2020. We had 2,063,146 and 119,800 shares of Series 2019 Preferred Stock outstanding as of September 30, 2020 and December 31, 2019, respectively.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2020
Equity [Abstract]
Stockholders' Equity	Stockholders' Equity During the three months ended September 30, 2020 and 2019 we raised approximately $7,373,000 and $20,131,000 of common stock and paid approximately $1,091,000 and $563,000 in distributions to common stockholders, respectively. During the nine months ended September 30, 2020 and 2019 we raised approximately $27,399,000 and $66,890,000 of common stock and paid approximately $2,997,000 and $874,000 in distributions to common stockholders, respectively. As of September 30, 2020, we had 11,575,766 of common stock outstanding, of which 11,558,254 was Class A common stock and 17,512 was Class T common stock. LTIP Unit Awards On March 25, 2020, we amended the agreement of our Operating Partnership effective February 1, 2020 to establish LTIP Units, a new series of partnership units, and to permit the admission of additional limited partners. We also entered into LTIP Unit Award Agreements with certain executive officers and a person associated with the dealer manager for our Offering, awarding 12,438 time-based LTIP Units and a target total of 37,312 performance-based LTIP Units. The time-based LTIP Units vest over a four year period at a rate of 25% each on January 1 of the following years: 2021, 2022, 2023 and 2024. The actual amount of each performance-based award is determined at the conclusion of the performance period, which is December 31, 2022 and will depend on the internal rate of return as defined in the award agreement. The earned performance-based 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 number of units was awarded at the estimated value per share of our common stock of $10.00. Time based LTIP Units, whether vested or unvested, receive the same distribution per unit as common stockholders. Performance based LTIP units receive 10% of that amount per unit on the total target units during the performance period, whereupon the participant receives an additional grant of LTIP Units the equivalent of 90% of distributions that would have been paid on the earned units during the performance period. Share based compensation for these awards during the three and nine months ended September 30, 2020 was approximately $22,000 and $49,000, respectively.

Related-Party Transactions

Related-Party Transactions	9 Months Ended
	Sep. 30, 2020
Related Party Transactions [Abstract]
Related-Party Transactions	Related-Party Transactions Asset management fees to our advisor for the three months ended September 30, 2020 and 2019 were $811,233 and $296,126, respectively. Asset management fees to our advisor for the nine months ended September 30, 2020 and 2019 were $1,941,542 and $453,851, respectively. Asset management fees waived by our advisor during the three and nine months ended September 30, 2020 were $48,543 and $188,333, respectively. There were $310,484 of asset management fees waived during the three and nine months ended September 30, 2019. Acquisition expenses reimbursed to our advisor for the three and nine months ended September 30, 2020 and 2019 were not significant, as we have generally incurred and paid such expenses directly. Reimbursable company operating expenses to our advisor or its affiliates for the three months ended September 30, 2020 and 2019 were $263,915 and $148,906, respectively. Reimbursable company operating expenses to our advisor or its affiliates for the nine months ended September 30, 2020 and 2019 were $732,998 and $399,391, respectively. Property management fees to our property manager for the three months ended September 30, 2020 and 2019 were $108,067 and $38,753, respectively. Property management fees to our property manager for the nine months ended September 30, 2020 and 2019 were $269,525 and $53,297, respectively. Property management fees to our property manager are classified as property operations expense on the condensed consolidated statements of operations.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Dolce B Note As of September 30, 2020, we had a remaining commitment of up to approximately $3,264,000 on the Dolce B-Note. 2980 Huron Investment On October 25, 2019, we entered into a joint venture to provide $20,000,000 of preferred equity 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"). Our contributions will only be made following the contribution of the full $17,500,000 of common equity by our joint venture partner. As of September 30, 2020, no draws have been made on our $20,000,000 commitment and we do not have commencement or completion dates for the 2980 Huron Project. Pursuant to the joint venture agreement, our obligation to advance the funds for our preferred equity membership interest is subject to the satisfaction of certain conditions which have not been satisfied. Further, our contractual obligation to fund our preferred equity investment has expired. We can provide no assurance we will ultimately advance funds for the 2980 Huron Investment. Litigation As of September 30, 2020, 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 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 (currently $10.00). Share Repurchase Programs 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 three or nine months ended September 30, 2020. 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. During the three and nine months ended September 30, 2020, we redeemed 31,307 and 0 shares of Class A and Class T common stock, respectively, pursuant to our share redemption program for $268,613, which was an average repurchase price of $8.58.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events We evaluate subsequent events up until the date the condensed consolidated financial statements are issued and have determined there are none to be reported or disclosed in the condensed consolidated financial statements other than those mentioned below. Status of the Private Offering As of November 10, 2020, we had sold 2,620,480 shares of Series 2019 Preferred Stock for aggregate gross offering proceeds of $26,088,409. In connection with the sale of these shares in the Private Offering, the Company paid aggregate selling commissions of $1,704,428 and placement fees of $506,930. Status of the Offering As of November 10, 2020, we had sold 11,799,847 shares of our Class A common stock and 17,516 shares of our Class T common stock in the Offering for aggregate gross offering proceeds of $117,566,430. Included in these amounts were 140,781 shares of common stock sold pursuant to the DRP Program for aggregate gross offering proceeds of $1,407,811. Dividends Paid - Series 2019 Preferred Stock Subsequent to September 30, 2020 and through the date of this report, we paid $190,539 of dividends to holders of record of Series 2019 Preferred Stock at an effective annual rate of 5.5% on the $10.00 purchase price, assuming distributions are paid every day for a year at the daily distribution rate. Dividends Declared - Series 2019 Preferred Stock On November 11, 2020, our board of directors declared cash distributions at a daily distribution rate of $0.00150273 for December 2020 and declared cash distributions at a daily distribution rate of $0.00150685 for January and February 2021, or 5.5% annually on the $10.00 purchase price, to holders of record of our Series 2019 Preferred Stock for the months of December 2020, January 2021 and February 2021. Distributions Paid - Common Stock Subsequent to September 30, 2020 and through the date of this report, we paid $962,567 of distributions to our common stockholders at an effective annual rate of 5.0% on the $10.00 purchase price, assuming distributions are paid every day for a year at the daily distribution rate. Distributions Declared - Common Stock Our board of directors has authorized cash distributions on the outstanding shares of our common stock based on daily record dates as follows: Authorization Date Period Daily Distribution Amount Annualized Rate (1) Expected Payment October 25, 2020 November 1, 2020 – November 30, 2020 $0.00136612 5% December 2020 November 11, 2020 December 1, 2020 – December 31, 2020 $0.00136612 5% January 2021 November 11, 2020 January 1, 2021 – January 31, 2021 $0.00136986 5% February 2021 November 11, 2020 February 1, 2021 – February 28, 2021 $0.00136986 5% March 2021 (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 amount. Holders of our common stock may choose to receive cash distributions or purchase additional shares.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed 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”) for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The condensed consolidated financial statements, including the condensed notes thereto, are unaudited and exclude some of the disclosures required in audited financial statements. The condensed consolidated balance sheet as of December 31, 2019 has been derived from the Company’s audited financial statements as of that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments and eliminations, consisting only of normal recurring adjustments necessary for a fair presentation in conformity with GAAP. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in our Annual Report on Form 10-K for the period ending December 31, 2019 filed with the SEC.
Organization and Offering Costs	Organization and Offering Costs All organization and offering costs in connection with the offering of our common stock are paid by our advisor. We will not incur any liability for or reimburse our advisor for any of these organizational and offering costs. As of September 30, 2020, our advisor incurred approximately $13,341,000 in organizational and offering costs from the issuance of common stock.

Real Estate Assets, Net (Tables

Real Estate Assets, Net (Tables)	9 Months Ended
	Sep. 30, 2020
Business Combinations [Abstract]
Summary of Carrying Amounts of Consolidated Real Estate Assets	The following table summarizes the carrying amounts of our consolidated real estate assets: September 30, 2020 December 31, 2019 Building and building improvements $ 134,776,296 $ 52,466,583 Land and land improvements 28,182,025 10,658,155 Furniture, fixtures and equipment 3,983,344 2,015,778 Intangible assets 3,808,756 1,503,325 170,750,421 66,643,841 Less: Accumulated depreciation and amortization (8,367,437) (2,738,190) Real estate assets, net $ 162,382,984 $ 63,905,651
Summary of Purchase Price Allocation of Real Estate Assets Acquired	The following table summarizes the purchase price allocation of the real estate assets acquired during the nine months ended September 30, 2020: Allocated Amounts Property Building Land Land Improvements Personal Property Intangible Total Cottonwood One Upland $ 82,145,536 $ 14,514,535 $ 3,009,335 $ 1,967,566 $ 2,305,430 $ 103,942,402

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2020
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 September 30, 2020 As of December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value Financial Asset: Real estate note investment $ 6,735,530 $ 6,735,530 $ 1,793,771 $ 1,793,771 Financial Liability: Berkadia Credit Facility $ 35,995,000 $ 39,603,000 $ 35,995,000 $ 37,410,000 JP Morgan Credit Facility $ 48,500,000 $ 48,500,000 $ — $ — Series 2019 Preferred Stock $ 20,561,909 $ 20,561,909 $ 1,198,000 $ 1,198,000

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2020
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 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.

Subsequent Events (Tables)

Subsequent Events (Tables)	9 Months Ended
	Sep. 30, 2020
Subsequent Events [Abstract]
Dividends Declared	Our board of directors has authorized cash distributions on the outstanding shares of our common stock based on daily record dates as follows: Authorization Date Period Daily Distribution Amount Annualized Rate (1) Expected Payment October 25, 2020 November 1, 2020 – November 30, 2020 $0.00136612 5% December 2020 November 11, 2020 December 1, 2020 – December 31, 2020 $0.00136612 5% January 2021 November 11, 2020 January 1, 2021 – January 31, 2021 $0.00136986 5% February 2021 November 11, 2020 February 1, 2021 – February 28, 2021 $0.00136986 5% March 2021 (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 amount.

Organization and Business (Deta

Organization and Business (Details)	9 Months Ended
	Sep. 30, 2020USD ($)employeerealEstateUnitsdevelopmentProjectclassesOfStock$ / shares
Subsidiary, Sale of Stock [Line Items]
Number of employees | employee	0
Number of multifamily apartment communities | realEstateUnits	2
Number of preferred equity investments | developmentProject	2
West Palm Beach
Subsidiary, Sale of Stock [Line Items]
Number of multifamily apartment communities | realEstateUnits	1
Boston
Subsidiary, Sale of Stock [Line Items]
Number of multifamily apartment communities | realEstateUnits	1
Ybor City
Subsidiary, Sale of Stock [Line Items]
Number of preferred equity investments | developmentProject	1
Queens
Subsidiary, Sale of Stock [Line Items]
Number of preferred equity investments | developmentProject	1
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 | classesOfStock	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
Subsidiary, Sale of Stock [Line Items]
Aggregate value of shares offered (up to)	$ 50,000,000
Share price (in dollars per share) | $ / shares	$ 10

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) $ in Thousands	Sep. 30, 2020USD ($)
Subsidiary, Sale of Stock [Line Items]
Offering costs incurred	$ 13,341

Real Estate Assets, Net (Detail

Real Estate Assets, Net (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Business Combinations [Abstract]
Building and building improvements	$ 134,776,296	$ 52,466,583
Land and land improvements	28,182,025	10,658,155
Furniture, fixtures and equipment	3,983,344	2,015,778
Intangible assets	3,808,756	1,503,325
Real estate investment property, at cost	170,750,421	66,643,841
Less: Accumulated depreciation and amortization	(8,367,437)	(2,738,190)
Real estate assets, net	$ 162,382,984	$ 63,905,651

Real Estate Assets, Net - Asset

Real Estate Assets, Net - Asset Acquisitions (Details) - USD ($)	Mar. 19, 2020	May 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Business Acquisition [Line Items]
Payment for asset acquisition	$ 103,600,000
Credit facility entered into in conjunction with acquisition of real estate			$ 12,000,000	$ 0
JP Morgan Credit Facility | Carrying Value
Business Acquisition [Line Items]
Lines of credit, fair value disclosure	$ 50,000,000		48,500,000		$ 0
Credit facility entered into in conjunction with acquisition of real estate			$ 67,600,000
One Upland
Business Acquisition [Line Items]
Building		$ 82,145,536
Land		14,514,535
Land Improvements		3,009,335
Personal Property		1,967,566
Intangible		2,305,430
Total		$ 103,942,402
Weighted-average amortization period		6 months

Investments in Unconsolidated_2

Investments in Unconsolidated Real Estate Entities (Details) - Corporate Joint Venture	Jul. 24, 2020USD ($)	Sep. 30, 2020USD ($)buildingsrealEstateUnits	Sep. 30, 2020USD ($)buildingsrealEstateUnits
Lector85 | Preferred Equity Investment
Real Estate [Line Items]
Investment, face amount, issued		$ 5,210,937	$ 5,210,937
Number of units in apartment community | realEstateUnits		254	254
Amount of investment		$ 9,900,000	$ 9,900,000
Investment income, interest		328,900	894,321
Vernon Boulevard | Preferred Equity Investment
Real Estate [Line Items]
Investment, face amount, issued		$ 15,000,000	$ 15,000,000
Number of units in apartment community | buildings		3	3
Investment income, interest		$ 379,167	$ 379,167
Vernon Boulevard | Preferred Equity Investment | Co-Investor
Real Estate [Line Items]
Investment, face amount, issued		40,000,000	40,000,000
Vernon Boulevard | Preferred Equity Investment | Foreign Fund
Real Estate [Line Items]
Investment, face amount, issued		$ 62,000,000	$ 62,000,000
Astoria Multifamily Apartments [Member]
Real Estate [Line Items]
Annual preferred return (percent)	13.00%
Construction loan	$ 225,000,000
Expected development costs	$ 342,000,000

Real Estate Note Investment (De

Real Estate Note Investment (Details) - B Note - Commercial Mortgage Backed Securities	3 Months Ended	9 Months Ended
	Sep. 30, 2020USD ($)realEstateUnits	Sep. 30, 2020USD ($)realEstateUnits
Real Estate [Line Items]
Notes issued	$ 1,488,000	$ 4,942,000
Investment owned, face amount	$ 10,000,000	$ 10,000,000
Number of units in apartment community | realEstateUnits	366	366
Investment owned, balance	$ 6,736,000	$ 6,736,000
Investment income, interest	$ 171,746	$ 360,874

Credit Facilities (Details)

Credit Facilities (Details)	9 Months Ended
	Sep. 30, 2020USD ($)extensions	Sep. 30, 2019USD ($)	Mar. 19, 2020USD ($)	Dec. 31, 2019USD ($)
Line of Credit Facility [Line Items]
Proceeds from line of credit	$ 12,000,000	$ 0
Credit facility, number of extensions | extensions	2
Credit facility, term of extension	1 year
JP Morgan Credit Facility
Line of Credit Facility [Line Items]
Loan-to-value ratio, maximum	65.00%
Line of credit facility, maximum borrowing capacity	$ 125,000,000
JP Morgan Credit Facility | Carrying Value
Line of Credit Facility [Line Items]
Lines of credit, fair value disclosure	48,500,000		$ 50,000,000	$ 0
Proceeds from line of credit	$ 67,600,000
Berkadia Credit Facility
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	3.93%
Berkadia Credit Facility | Carrying Value
Line of Credit Facility [Line Items]
Lines of credit, fair value disclosure	$ 35,995,000			$ 35,995,000
Minimum | JP Morgan Credit Facility | 1-month LIBOR
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.50%
Maximum | JP Morgan Credit Facility | 1-month LIBOR
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.75%

Fair Value of Financial Instr_3

Fair Value of Financial Instruments (Details) - USD ($)	Sep. 30, 2020	Mar. 19, 2020	Dec. 31, 2019
Carrying Value
Financial Asset:
Real estate note investment	$ 6,735,530		$ 1,793,771
Financial Liability:
Series 2019 Preferred Stock	20,561,909		1,198,000
Carrying Value | Berkadia Credit Facility
Financial Liability:
Lines of credit, fair value disclosure	35,995,000		35,995,000
Carrying Value | JP Morgan Credit Facility
Financial Liability:
Lines of credit, fair value disclosure	48,500,000	$ 50,000,000	0
Fair Value
Financial Asset:
Real estate note investment	6,735,530		1,793,771
Financial Liability:
Series 2019 Preferred Stock	20,561,909		1,198,000
Fair Value | Berkadia Credit Facility
Financial Liability:
Lines of credit, fair value disclosure	39,603,000		37,410,000
Fair Value | JP Morgan Credit Facility
Financial Liability:
Lines of credit, fair value disclosure	$ 48,500,000		$ 0

Preferred Stock (Details)

Preferred Stock (Details) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Subsidiary, Sale of Stock [Line Items]
Proceeds from issuance of preferred stock, net of issuance costs	$ 17,445,501	$ 0
2019 Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Preferred stock, annualized rate	5.50%
Proceeds from issuance of preferred stock, net of issuance costs	$ 19,364,000
Preferred stock, dividends	$ 451,000
Preferred stock, shares outstanding (in shares)	2,063,146		119,800

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)	Mar. 25, 2020	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Subsidiary, Sale of Stock [Line Items]
Proceeds from issuance of common stock, accrual basis		$ (7,373,000)	$ (20,131,000)	$ (27,399,000)	$ (66,890,000)
Distributions paid in cash		$ 1,091,000	$ 563,000	$ 2,997,008	$ 874,358
Common stock, shares outstanding (in shares)		11,575,766		11,575,766		8,851,759
Share-based Payment Arrangement, Tranche Two
Subsidiary, Sale of Stock [Line Items]
Time-based LTIP units annual vesting percentage	25.00%
Share-based Payment Arrangement, Tranche Three
Subsidiary, Sale of Stock [Line Items]
Time-based LTIP units annual vesting percentage	25.00%
Share-based Payment Arrangement, Tranche Four
Subsidiary, Sale of Stock [Line Items]
Time-based LTIP units annual vesting percentage	25.00%
Long Term Incentive Plan
Subsidiary, Sale of Stock [Line Items]
Share price (in usd per share)	$ 10
Performance Shares | Long Term Incentive Plan
Subsidiary, Sale of Stock [Line Items]
Number of equity instruments other than options awarded	37,312
Percent of amount per unit on total target units	10.00%
Percent of distributions that would have been paid out	90.00%
Share-based compensation		$ 22,000		$ 49,000
Time Based Shares | Long Term Incentive Plan
Subsidiary, Sale of Stock [Line Items]
Number of equity instruments other than options awarded	12,438
Time-based LTIP units vesting period	4 years
Time Based Shares | Long Term Incentive Plan | Share-based Payment Arrangement, Tranche One
Subsidiary, Sale of Stock [Line Items]
Time-based LTIP units annual vesting percentage	25.00%
Class A
Subsidiary, Sale of Stock [Line Items]
Common stock, shares outstanding (in shares)		11,558,254		11,558,254
Class T
Subsidiary, Sale of Stock [Line Items]
Common stock, shares outstanding (in shares)		17,512		17,512

Related-Party Transactions (Det

Related-Party Transactions (Details) - Cottonwood Communities Management, LLC - Affiliated Entity - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Related Party Transaction [Line Items]
Asset management fees	$ 811,233	$ 296,126	$ 1,941,542	$ 453,851
Asset management fees waived	48,543	310,484	188,333	310,484
Operating expenses, reimbursable	263,915	148,906	732,998	399,391
Property management fees	$ 108,067	$ 38,753	$ 269,525	$ 53,297

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details)	3 Months Ended	9 Months Ended
	Sep. 30, 2020USD ($)$ / sharesshares	Sep. 30, 2020USD ($)$ / sharesshares	Sep. 30, 2019USD ($)	Oct. 25, 2019USD ($)a
Subsidiary, Sale of Stock [Line Items]
Percentage of weighted average number of shares of common stock outstanding authorized for repurchase	5.00%	5.00%
Payments for repurchase of common stock		$ 268,613	$ 0
Period of notice required for repurchase program termination		15 days
Common Stock
Subsidiary, Sale of Stock [Line Items]
Number of shares redeemed (in shares) | shares	31,307
Payments for repurchase of common stock	$ 268,613	$ 268,613
Average redemption price per share (in usd per share) | $ / shares	$ 8.58	$ 8.58
2019 Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Number of shares redeemed (in shares) | shares	0	0
Class A | Common Stock
Subsidiary, Sale of Stock [Line Items]
Number of shares redeemed (in shares) | shares	31,307	31,307
Class T | Common Stock
Subsidiary, Sale of Stock [Line Items]
Number of shares redeemed (in shares) | shares	0	0
Distribution Reinvestment Plan
Subsidiary, Sale of Stock [Line Items]
Share price (in dollars per share) | $ / shares	$ 10	$ 10
B Note
Subsidiary, Sale of Stock [Line Items]
Investment remaining amount	$ 3,264,000	$ 3,264,000
2980 Huron | Corporate Joint Venture
Subsidiary, Sale of Stock [Line Items]
Number of acres | a				0.84
2980 Huron | Corporate Joint Venture | Preferred Equity Investment
Subsidiary, Sale of Stock [Line Items]
Amount of investment				$ 20,000,000
2980 Huron | Corporate Joint Venture | Common Equity Investment
Subsidiary, Sale of Stock [Line Items]
Real estate investments, equity				$ 17,500,000

Commitments and Contingencies_2

Commitments and Contingencies - Share Repurchase Program (Details)	Sep. 30, 2020$ / shares
A stockholder’s death or complete disability, 2 years or more | Common Stock
Share Repurchase Program [Line Items]
Repurchase price as a percentage of estimated value	100.00%
1 year - 2 years | Common Stock
Share Repurchase Program [Line Items]
Repurchase price as a percentage of estimated value	85.00%
3 years - 4 years | Common Stock
Share Repurchase Program [Line Items]
Repurchase price as a percentage of estimated value	90.00%
5 years and thereafter | Common Stock
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 | Common Stock
Share Repurchase Program [Line Items]
Repurchase price as a percentage of estimated value	95.00%
2019 Preferred Stock | Less than 1 year
Share Repurchase Program [Line Items]
Stock repurchase program, repurchase price per share (in dollars per share)	$ 8.80
2019 Preferred Stock | 1 year
Share Repurchase Program [Line Items]
Stock repurchase program, repurchase price per share (in dollars per share)	9
2019 Preferred Stock | 2 years
Share Repurchase Program [Line Items]
Stock repurchase program, repurchase price per share (in dollars per share)	9.20
2019 Preferred Stock | 3 years
Share Repurchase Program [Line Items]
Stock repurchase program, repurchase price per share (in dollars per share)	9.40
2019 Preferred Stock | 4 years
Share Repurchase Program [Line Items]
Stock repurchase program, repurchase price per share (in dollars per share)	9.60
2019 Preferred Stock | 5 years
Share Repurchase Program [Line Items]
Stock repurchase program, repurchase price per share (in dollars per share)	9.80
2019 Preferred Stock | A stockholder’s death or complete disability, 2 years or more
Share Repurchase Program [Line Items]
Stock repurchase program, repurchase price per share (in dollars per share)	$ 10

Subsequent Events (Details)

Subsequent Events (Details)	Nov. 11, 2020$ / shares	Nov. 10, 2020USD ($)shares	Feb. 28, 2021	Jan. 31, 2021	Dec. 31, 2020$ / shares	Nov. 30, 2020	Nov. 13, 2020USD ($)	Feb. 28, 2021$ / shares	Sep. 30, 2020USD ($)buildings	Sep. 30, 2019USD ($)
Subsequent Event [Line Items]
Proceeds from issuance of preferred stock, net of issuance costs									$ 17,445,501	$ 0
Proceeds from issuance of common stock									26,512,608	$ 66,377,134
2019 Preferred Stock
Subsequent Event [Line Items]
Proceeds from issuance of preferred stock, net of issuance costs									19,364,000
Preferred stock, dividends									$ 451,000
Preferred stock, annualized rate									5.50%
Forecast
Subsequent Event [Line Items]
Common stock, annualized rate			5.00%	5.00%	5.00%
Vernon Boulevard | Corporate Joint Venture | Preferred Equity Investment
Subsequent Event [Line Items]
Investment, face amount, issued									$ 15,000,000
Number of units in apartment community | buildings									3
Vernon Boulevard | Corporate Joint Venture | Foreign Fund | Preferred Equity Investment
Subsequent Event [Line Items]
Investment, face amount, issued									$ 62,000,000
Subsequent event | 2019 Preferred Stock
Subsequent Event [Line Items]
Preferred stock, dividends							$ 190,539
Preferred stock, annualized rate	5.50%
Preferred stock, daily distribution rate (in dollars per share) | $ / shares					$ 0.00150273
Share price (in usd per share) | $ / shares	$ 10
Subsequent event | Forecast
Subsequent Event [Line Items]
Common stock, annualized rate						5.00%
Subsequent event | Forecast | 2019 Preferred Stock
Subsequent Event [Line Items]
Preferred stock, daily distribution rate (in dollars per share) | $ / shares								$ 0.00150685
Subsequent event | Private Placement | 2019 Preferred Stock
Subsequent Event [Line Items]
Number of shares sold (in shares) | shares		2,620,480
Proceeds from issuance of preferred stock, net of issuance costs		$ 26,088,409
Selling commissions		1,704,428
Placement fees		$ 506,930
Subsequent event | Class A | Private Placement
Subsequent Event [Line Items]
Number of shares sold (in shares) | shares		11,799,847
Subsequent event | Class T | Private Placement
Subsequent Event [Line Items]
Number of shares sold (in shares) | shares		17,516
Subsequent event | Common Stock
Subsequent Event [Line Items]
Dividends on common stock, cash							$ 962,567
Common stock, annualized rate							5.00%
Share price (in usd per share) | $ / shares	$ 10
Subsequent event | Common Stock | Distribution Reinvestment Plan
Subsequent Event [Line Items]
Number of shares sold (in shares) | shares		140,781
Proceeds from issuance of common stock		$ 1,407,811
Subsequent event | Common Stock | Private Placement
Subsequent Event [Line Items]
Proceeds from issuance of common stock		$ 117,566,430

Subsequent Events - Distributio

Subsequent Events - Distributions Declared and Paid (Details) - $ / shares	1 Months Ended
	Feb. 28, 2021	Jan. 31, 2021	Dec. 31, 2020	Nov. 30, 2020	Nov. 13, 2020	Nov. 11, 2020
Forecast
Subsequent Event [Line Items]
Common stock, daily distribution rate (in dollars per share)	$ 0.00136986	$ 0.00136986	$ 0.00136612
Common stock, annualized rate	5.00%	5.00%	5.00%
Subsequent event | Common Stock
Subsequent Event [Line Items]
Common stock, annualized rate					5.00%
Share price (in usd per share)						$ 10
Subsequent event | Forecast
Subsequent Event [Line Items]
Common stock, daily distribution rate (in dollars per share)				$ 0.00136612
Common stock, annualized rate				5.00%