10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

þ	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended March 31, 2017

OR

o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from  to

Commission file number 000-54674

STEADFAST INCOME REIT, INC.

(Exact Name of Registrant as Specified in Its Charter)

Maryland	27-0351641
(State or Other Jurisdiction of	(I.R.S. Employer
Incorporation or Organization)	Identification No.)
18100 Von Karman Avenue, Suite 500
Irvine, California	92612
(Address of Principal Executive Offices)	(Zip Code)

(949) 852-0700

(Registrant’s Telephone Number, Including Area Code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filed, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	o	Accelerated filer	o	Non-accelerated filer	þ (Do not check if a smaller reporting company)
Smaller reporting company	o	Emerging growth company	o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ

As of May 5, 2017, there were 75,838,829 shares of the Registrant’s common stock issued and outstanding.

STEADFAST INCOME REIT, INC.

INDEX

	Page
PART I — FINANCIAL INFORMATION
Item 1. Financial Statements	2
Consolidated Balance Sheets as of March 31, 2017 (unaudited) and December 31, 2016	2
Consolidated Statements of Operations for the three months ended March 31, 2017 and 2016 (unaudited)	3
Consolidated Statements of Stockholders’ Equity for the year ended December 31, 2016 and for the three months ended March 31, 2017 (unaudited)	4
Consolidated Statements of Cash Flows for the three months ended March 31, 2017 and 2016 (unaudited)	5
Condensed Notes to Consolidated Financial Statements as of March 31, 2017 (unaudited)	7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	32
Item 3. Quantitative and Qualitative Disclosures About Market Risk	50
Item 4. Controls and Procedures	51
PART II — OTHER INFORMATION
Item 1. Legal Proceedings	53
Item 1A. Risk Factors	53
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	53
Item 3. Defaults Upon Senior Securities	54
Item 4. Mine Safety Disclosures	54
Item 5. Other Information	54
Item 6. Exhibits	54
Signatures	55

1

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

STEADFAST INCOME REIT, INC.

CONSOLIDATED BALANCE SHEETS

	March 31, 2017			December 31, 2016
	(Unaudited)
ASSETS
Assets:
Real Estate:
Land	$	174,102,422		$	174,102,422
Building and improvements	1,521,600,455			1,517,532,273
Other intangible assets	2,644,263			2,644,263
Total real estate, cost	1,698,347,140			1,694,278,958
Less accumulated depreciation and amortization	(250,695,674		)	(232,744,083		)
Total real estate, net	1,447,651,466			1,461,534,875
Cash and cash equivalents	55,200,301			66,224,027
Restricted cash	16,741,218			27,553,851
Short-term investments	30,000,000			30,084,750
Rents and other receivables	2,903,177			2,750,520
Other assets	3,351,042			4,786,762
Total assets	$	1,555,847,204		$	1,592,934,785
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Accounts payable and accrued liabilities	$	34,434,803		$	47,377,341
Notes payable:
Mortgage notes payable, net	982,767,140			985,080,154
Credit facility, net	232,778,538			232,636,126
Total notes payable, net	1,215,545,678			1,217,716,280
Distributions payable	4,627,865			4,625,355
Due to affiliates	1,887,582			2,787,566
Total liabilities	1,256,495,928			1,272,506,542
Commitments and contingencies (Note 10)
Stockholders’ Equity:
Preferred stock, $0.01 par value per share; 100,000,000 shares authorized, no shares issued and outstanding	—			—
Common stock, $0.01 par value per share; 999,999,000 shares authorized, 76,018,907 and 76,202,862 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively	760,189			762,029
Convertible stock, $0.01 par value per share; 1,000 shares issued and outstanding as of March 31, 2017 and December 31, 2016, respectively	10			10
Additional paid-in capital	670,035,064			672,018,194
Cumulative distributions and net losses	(371,443,987		)	(352,351,990		)
Total stockholders’ equity	299,351,276			320,428,243
Total liabilities and stockholders’ equity	$	1,555,847,204		$	1,592,934,785

See accompanying notes to consolidated financial statements.

2

PART I — FINANCIAL INFORMATION (continued)

Item 1. Financial Statements (continued)

STEADFAST INCOME REIT, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended March 31,
	2017			2016
Revenues:
Rental income	$	48,215,774		$	47,170,635
Tenant reimbursements and other	6,064,491			5,736,273
Total revenues	54,280,265			52,906,908
Expenses:
Operating, maintenance and management	14,076,201			13,709,810
Real estate taxes and insurance	9,812,747			8,911,021
Fees to affiliates	5,622,023			5,522,423
Depreciation and amortization	17,953,723			16,947,268
Interest expense	10,848,036			10,046,840
General and administrative expenses	1,612,410			1,387,688
Total expenses	59,925,140			56,525,050
Net loss	$	(5,644,875	)	$	(3,618,142	)
Loss per common share — basic and diluted	$	(0.07	)	$	(0.05	)
Weighted average number of common shares outstanding — basic and diluted	76,066,450			76,350,555
Distributions declared per common share	$	0.177		$	0.178

See accompanying notes to consolidated financial statements.

3

PART I — FINANCIAL INFORMATION (continued)

Item 1. Financial Statements (continued)

STEADFAST INCOME REIT, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE YEAR ENDED DECEMBER 31, 2016

AND FOR THE THREE MONTHS ENDED MARCH 31, 2017 (Unaudited)

	Common Stock					Convertible Stock			Additional Paid- In Capital			Cumulative Distributions & Net Losses			Total Stockholders’ Equity
	Shares		Amount			Shares	Amount
BALANCE, December 31, 2015	76,674,502		$	766,745		1,000	$	10	$	677,624,840		$	(271,944,072	)	$	406,447,523
Issuance of common stock	7,500		75			—	—		(75		)	—			—
Transfers to redeemable common stock	—		—			—	—		(1,000,000		)	—			(1,000,000		)
Redemption of common stock	(479,140	)	(4,791		)	—	—		(4,995,209		)	—			(5,000,000		)
Distributions declared	—		—			—	—		—			(54,828,267		)	(54,828,267		)
Amortization of stock-based compensation	—		—			—	—		76,285			—			76,285
Change in value of restricted common stock to Advisor	—		—			—	—		312,353			—			312,353
Net loss for the year ended December 31, 2016	—		—			—	—		—			(25,579,651		)	(25,579,651		)
BALANCE, December 31, 2016	76,202,862		762,029			1,000	10		672,018,194			(352,351,990		)	320,428,243
Redemption of common stock	(183,955	)	(1,840		)	—	—		(1,998,160		)	—			(2,000,000		)
Distributions declared	—		—			—	—		—			(13,447,122		)	(13,447,122		)
Amortization of stock-based compensation	—		—			—	—		15,030			—			15,030
Net loss for the three months ended March 31, 2017	—		—			—	—		—			(5,644,875		)	(5,644,875		)
BALANCE, March 31, 2017	76,018,907		$	760,189		1,000	$	10	$	670,035,064		$	(371,443,987	)	$	299,351,276

See accompanying notes to consolidated financial statements.

4

PART I — FINANCIAL INFORMATION (continued)

Item 1. Financial Statements (continued)

STEADFAST INCOME REIT, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Three Months Ended March 31,
	2017			2016
Cash Flows from Operating Activities:
Net loss	$	(5,644,875	)	$	(3,618,142	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	17,953,723			16,947,268
Amortization of deferred financing costs	470,696			382,044
Amortization of stock-based compensation	15,030			12,864
Change in value of restricted common stock to Advisor	—			113,607
Amortization of loan premiums and discounts	(308,639		)	(308,698		)
Change in fair value of interest rate cap agreements	319,953			232,712
Insurance claim recoveries	(7,895		)	—
Loss on disposal of buildings and improvements	4,025			—
Unrealized gain on short-term investments	(84,750		)	—
Changes in operating assets and liabilities:
Restricted cash for operating activities	10,621,456			9,544,451
Rents and other receivables	(152,657		)	(659,186		)
Other assets	1,115,767			951,635
Accounts payable and accrued liabilities	(12,504,541		)	(10,840,794		)
Due to affiliates	(892,691		)	(814,996		)
Net cash provided by operating activities	10,904,602			11,942,765
Cash Flows from Investing Activities:
Proceeds from short-term investments	169,500			—
Additions to real estate investments	(4,519,629		)	(5,810,659		)
Restricted cash for investing activities	191,177			876,767
Proceeds from insurance claims	7,895			—
Net cash used in investing activities	(4,151,057		)	(4,933,892		)
Cash Flows from Financing Activities:
Proceeds from issuance of mortgage notes payable	303,751			162,086
Principal payments on mortgage notes payable	(2,636,410		)	(4,097,630		)
Borrowings from credit facility	—			16,000,000
Distributions to common stockholders	(13,444,612		)	(13,669,663		)
Redemptions of common stock	(2,000,000		)	(1,000,000		)
Net cash used in financing activities	(17,777,271		)	(2,605,207		)
Net (decrease) increase in cash and cash equivalents	(11,023,726		)	4,403,666
Cash and cash equivalents, beginning of period	66,224,027			32,076,582
Cash and cash equivalents, end of period	$	55,200,301		$	36,480,248

5

PART I — FINANCIAL INFORMATION (continued)

Item 1. Financial Statements (continued)

STEADFAST INCOME REIT, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

(Unaudited)

	Three Months Ended March 31,
	2017			2016
Supplemental Disclosures of Cash Flow Information:
Interest paid, net of amounts capitalized of $0 and $25,904 for the three months ended March 31, 2017 and 2016, respectively	$	10,262,157		$	9,598,899
Supplemental Disclosure of Noncash Transactions:
Increase (decrease) in distributions payable	$	2,510		$	(20,333	)
(Decrease) increase in accounts payable and accrued liabilities from additions to real estate investments	$	(437,997	)	$	648,313
Decrease in due to affiliates from additions to real estate investments	$	(7,293	)	$	(129,078	)

See accompanying notes to consolidated financial statements.

6

PART I — FINANCIAL INFORMATION (continued)

Item 1. Financial Statements (continued)

STEADFAST INCOME REIT, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2017

(unaudited)

1. Organization and Business

Steadfast Income REIT, Inc. (the “Company”) was formed on May 4, 2009, as a Maryland corporation that has elected to be treated as, and currently qualifies as, a real estate investment trust (“REIT”). On June 12, 2009, the Company was initially capitalized pursuant to the sale of 22,223 shares of common stock to Steadfast REIT Investments, LLC (the “Sponsor”) at a purchase price of $9.00 per share for an aggregate purchase price of $200,007. On July 10, 2009, Steadfast Income Advisor, LLC (the “Advisor”), a Delaware limited liability company formed on May 1, 2009, invested $1,000 in the Company in exchange for 1,000 shares of convertible stock (the “Convertible Stock”) as described in Note 6.

Substantially all of the Company’s business is conducted through Steadfast Income REIT Operating Partnership, L.P., a Delaware limited partnership formed on July 6, 2009 (the “Operating Partnership”). The Company is the sole general partner of the Operating Partnership. As the Company accepted subscriptions for shares of its common stock in the Public Offering (as defined below), the Company transferred substantially all of the net offering proceeds to the Operating Partnership in exchange for limited partnership interests and the Company’s percentage ownership in the Operating Partnership increased proportionately. The Company and Advisor entered into an Amended and Restated Limited Partnership Agreement of the Operating Partnership (the “Partnership Agreement”) on September 28, 2009.

As of March 31, 2017, the Company owned 65 multifamily properties comprising a total of 16,709 apartment homes and 25,973 square feet of rentable commercial space.

Private Offering

On October 13, 2009, the Company commenced a private offering of up to $94,000,000 in shares of the Company’s common stock at a purchase price of $9.40 per share (with discounts available for certain categories of purchasers) (the “Private Offering”). The Company offered its shares of common stock for sale in the Private Offering pursuant to a confidential private placement memorandum and only to persons that were “accredited investors,” as that term is defined under the Securities Act of 1933, as amended (the “Securities Act”), and Regulation D promulgated thereunder. On July 9, 2010, the Company terminated the Private Offering and on July 19, 2010, the Company commenced its registered public offering described below. The Company sold 637,279 shares of common stock in the Private Offering for gross offering proceeds of $5,844,325.

Public Offering

On July 19, 2010, the Company commenced its initial public offering of up to a maximum of 150,000,000 shares of common stock for sale to the public at an initial price of $10.00 per share (with discounts available for certain categories of purchasers) (the “Primary Offering”). The Company also offered up to 15,789,474 shares of common stock for sale pursuant to the Company’s distribution reinvestment plan (the “DRP,” and together with the Primary Offering, the “Public Offering”) at an initial price of $9.50 per share.The Company could reallocate shares of common stock registered in the Public Offering between the Primary Offering and the DRP.

On July 12, 2012, the Company’s board of directors determined an estimated value per share of the Company’s common stock as of March 31, 2012 of $10.24. As a result of the determination of the estimated value per share of the Company’s common stock, effective September 10, 2012, the offering price of the Company’s common stock to the public in the Primary Offering increased from the previous price of $10.00 per share to $10.24 per share. Additionally, effective September 10, 2012, the price of shares of the Company’s common stock issued pursuant to the DRP increased from a price of $9.50 per share to a price of $9.73 per share, or 95% of the new Primary Offering price of $10.24 per share. Effective September 10, 2012, the Company’s board of directors increased the amount of distributions paid on each share of the Company’s common stock from

7

PART I — FINANCIAL INFORMATION (continued)

Item 1. Financial Statements (continued)

STEADFAST INCOME REIT, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2017

(unaudited)

$0.001917 per share per day to $0.001964 per share per day, which, if paid each day over a 365-day period, is equivalent to a 7.0% annualized distribution rate based on the new offering price of $10.24 per share.

The Company terminated its Public Offering on December 20, 2013. Following termination of the Public Offering, the Company continued to offer shares of common stock pursuant to the DRP until the Company’s board of directors suspended the DRP effective with distributions earned beginning on December 1, 2014. Through December 20, 2013, the Company sold 73,608,337 shares of common stock in the Public Offering for gross proceeds of $745,389,748, including 1,588,289 shares of common stock issued pursuant to the DRP for gross offering proceeds of $15,397,232.

On March 10, 2015, the Company’s board of directors determined an estimated value per share of the Company’s common stock of $10.35 as of December 31, 2014. On February 25, 2016, the Company’s board of directors determined an estimated value per share of the Company’s common stock of $11.44 as of December 31, 2015. On February 15, 2017 the Company’s board of directors determined an estimated value per share of the Company’s common stock of $11.65 as of December 31, 2016.

The business of the Company is externally managed by the Advisor, pursuant to the Advisory Agreement by and among the Company, the Operating Partnership and the Advisor (as amended, the “Advisory Agreement”), which is subject to annual renewal by the Company’s board of directors. The current term of the Advisory Agreement expires on November 15, 2017. Subject to certain restrictions and limitations, the Advisor manages the Company’s day-to-day operations, manages the Company’s portfolio of properties and real estate-related assets, sources and presents investment opportunities to the Company’s board of directors and provides investment management services on the Company’s behalf. Steadfast Capital Markets Group, LLC (the “Dealer Manager”), an affiliate of the Company, served as the dealer manager for the Public Offering. The Advisor, along with the Dealer Manager, also provides marketing, investor relations and other administrative services on the Company’s behalf.

The Partnership Agreement provides that the Operating Partnership is operated in a manner that will enable the Company to (1) satisfy the requirements for being classified as a REIT for tax purposes, (2) avoid any federal income or excise tax liability and (3) ensure that the Operating Partnership will not be classified as a “publicly traded partnership” for purposes of Section 7704 of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), which classification could result in the Operating Partnership being taxed as a corporation, rather than as a partnership. In addition to the administrative and operating costs and expenses incurred by the Operating Partnership in acquiring and operating real properties, the Operating Partnership will pay all of the Company’s administrative costs and expenses, and such expenses will be treated as expenses of the Operating Partnership.

2. Summary of Significant Accounting Policies

There have been no significant changes to the Company’s accounting policies since it filed its audited financial statements in its Annual Report on Form 10-K for the year ended December 31, 2016. For further information about the Company’s accounting policies, refer to the Company’s consolidated financial statements and notes thereto for the year ended December 31, 2016 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 16, 2017.

Principles of Consolidation and Basis of Presentation

The consolidated financial statements include the accounts of the Company, the consolidated variable interest entity (“VIE”) that the Company controls and of which the Company is the primary beneficiary, and the Operating Partnership’s subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation. The financial statements of

8

PART I — FINANCIAL INFORMATION (continued)

Item 1. Financial Statements (continued)

STEADFAST INCOME REIT, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2017

(unaudited)

the Company’s subsidiaries are prepared using accounting policies consistent with those of the Company. The Operating Partnership is a VIE as the limited partner lacks substantive kick-out rights and substantive participating rights. The Company is the primary beneficiary of, and consolidates, the Operating Partnership.

The accompanying unaudited consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board (“FASB”), Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments that are of a normal and recurring nature and necessary for a fair and consistent presentation of the results of such periods. Operating results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. The unaudited consolidated financial statements herein should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates.

Short-term Investments

Short-term investments consist of any highly-liquid securities that have an original maturity of less than one year but greater than three months at the time of purchase. As of March 31, 2017 and December 31, 2016, short-term investments consisted of $30,000,000 held in a certificate of deposit and are included in short-term investments on the consolidated balance sheets. The certificate of deposit originally matured on March 28, 2017; however, upon maturity, the balance was rolled into a new six-month certificate of deposit. The short-term investment is classified as held-to-maturity and was recorded at the amortized cost on the accompanying consolidated balance sheets. During the three months ended March 31, 2017 and 2016, $84,750 and $0 was included in tenant reimbursements and other on the accompanying consolidated statements of operations.

Fair Value Measurements

Under GAAP, the Company is required to measure certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other assets and liabilities at fair value on a non-recurring basis (e.g., carrying value of impaired real estate loans receivable and long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories:

• Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities;

• Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and

9

PART I — FINANCIAL INFORMATION (continued)

Item 1. Financial Statements (continued)

STEADFAST INCOME REIT, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2017

(unaudited)

• Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both significant to the fair value measurement and unobservable.

When available, the Company utilizes quoted market prices from an independent third-party source to determine fair value and will classify such items in Level 1 or Level 2. In instances where the market is not active, regardless of the availability of a nonbinding quoted market price, observable inputs might not be relevant and could require the Company to make a significant adjustment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent third party may rely more on models with inputs based on information available only to that independent third party. When the Company determines the market for a financial instrument owned by the Company to be illiquid or when market transactions for similar instruments do not appear orderly, the Company uses several valuation sources (including internal valuations, discounted cash flow analysis and quoted market prices) and will establish a fair value by assigning weights to the various valuation sources.

The following describes the valuation methodologies used by the Company to measure fair value, including an indication of the level in the fair value hierarchy in which each asset or liability is generally classified.

Interest rate cap agreements — The Company has entered into certain interest rate cap agreements. These derivatives did not qualify as fair value hedges. Fair value was based on a model-driven valuation using the associated variable rate curve and an implied market volatility, both of which were observable at commonly quoted intervals for the full term of the interest rate cap agreements. Therefore, the Company’s interest rate cap agreements were classified within Level 2 of the fair value hierarchy and are included in other assets in the accompanying consolidated balance sheets.

The following table reflects the Company’s assets required to be measured at fair value on a recurring basis on the consolidated balance sheets:

	March 31, 2017
	Fair Value Measurements Using
	Level 1		Level 2		Level 3
Assets:
Interest rate cap agreements	$	—	$	298,888	$	—

	December 31, 2016
	Fair Value Measurements Using
	Level 1		Level 2		Level 3
Assets:
Interest rate cap agreements	$	—	$	618,841	$	—

Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values. In this regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in an immediate settlement of the instrument.

10

PART I — FINANCIAL INFORMATION (continued)

Item 1. Financial Statements (continued)

STEADFAST INCOME REIT, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2017

(unaudited)

Fair Value of Financial Instruments

The accompanying consolidated balance sheets include the following financial instruments: cash and cash equivalents, restricted cash, short-term investments, rents and other receivables, accounts payable and accrued liabilities, distributions payable, due to affiliates and notes payable.

The Company considers the carrying value of cash and cash equivalents, restricted cash, rents and other receivables, accounts payable and accrued liabilities and distributions payable to approximate the fair value of these financial instruments based on the short duration between origination of the instruments and their expected realization. The Company considers the carrying value of short-term investments to approximate fair value as it was recorded at amortized cost. The fair value of amounts due to affiliates is not determinable due to the related party nature of such amounts.

The fair value of the notes payable is estimated using a discounted cash flow analysis using borrowing rates available to the Company for debt instruments with similar terms and maturities. As of March 31, 2017 and December 31, 2016, the fair value of the notes payable was $1,219,644,512 and $1,197,015,105, respectively, compared to the carrying value of $1,215,545,678 and $1,217,716,280, respectively. The Company has determined that its notes payable are classified as Level 3 within the fair value hierarchy.

Distribution Policy

The Company has elected to be taxed as a REIT and to operate as a REIT beginning with its taxable year ending December 31, 2010. To maintain its qualification as a REIT, the Company intends to make distributions each taxable year equal to at least 90% of its REIT taxable income (which is determined without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). Distributions during the three months ended March 31, 2017 and 2016 were based on daily record dates and calculated at a rate of $0.001964 per share per day. Each day during the three months ended March 31, 2017 and 2016 was a distribution record date.

Distributions to stockholders are determined by the board of directors of the Company and are dependent upon a number of factors relating to the Company, including funds available for the payment of distributions, financial condition, the timing of property acquisitions, capital expenditure requirements and annual distribution requirements in order for the Company to qualify as a REIT under the Internal Revenue Code. During the three months ended March 31, 2017 and 2016, the Company declared distributions of $0.177 and $0.178 per common share, respectively.

Per Share Data

Basic earnings (loss) per share attributable to common stockholders for all periods presented are computed by dividing net income (loss) by the weighted average number of shares of the Company’s common stock outstanding during the period. Diluted earnings (loss) per share is computed based on the weighted average number of shares of the Company’s common stock and all potentially dilutive securities, if any. Distributions declared per common share assume each share was issued and outstanding each day during the period. Nonvested shares of the Company’s restricted common stock give rise to potentially dilutive shares of the Company’s common stock, but such shares were excluded from the computation of diluted earnings (loss) per share because such shares were anti-dilutive during the period.

In accordance with FASB ASC Topic 260-10-45, Earnings Per Share, the Company uses the two-class method to calculate earnings (loss) per share. Basic earnings (loss) per share is calculated based on dividends declared and the rights of common shares and participating securities in any undistributed earnings, which represents net income (loss) remaining after deduction of dividends declared during the period. The undistributed earnings (loss) are allocated to all outstanding common shares based on the relative percentage of each class of shares. The Company does not have any participating securities outstanding other than the shares of common stock and the unvested restricted common stock during the periods presented. Earnings (loss)

11

PART I — FINANCIAL INFORMATION (continued)

Item 1. Financial Statements (continued)

STEADFAST INCOME REIT, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2017

(unaudited)

attributable to the unvested restricted common stock are deducted from earnings (loss) in the computation of per share amounts where applicable.

Segment Disclosure

The Company has determined that it has one reportable segment with activities related to investing in multifamily properties. The Company’s investments in real estate are in different geographic regions, and management evaluates operating performance on an individual asset level. However, as each of the Company’s assets has similar economic characteristics, tenants and products and services, its assets have been aggregated into one reportable segment.

Recent Accounting Pronouncements

In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606). The new guidance requires an entity to recognize the revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The new guidance supersedes the revenue requirements in Revenue Recognition (Topic 605) and most industry-specific guidance throughout the Industry Topics of the Codification. The new guidance does not apply to lease contracts within the scope of Leases (Topic 840). In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606), which delayed the effective date of the new guidance by one year, which will result in the new guidance being effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and is to be applied retrospectively. Early adoption is permitted, but can be no earlier than the original public entity effective date of fiscal years, and interim periods within those years, beginning after December 15, 2016. The Company anticipates selecting the modified retrospective transition method with a cumulative effect recognized as of the date of adoption and will adopt the new standard effective January 1, 2018. The Company is continuing to evaluate the standard; however, the Company does not expect its adoption to have a material impact on the consolidated financial statements, as rental income from leasing arrangements is specifically excluded from the standard.

In February 2016, the FASB issued ASU 2016-02, Leases, amending the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. The new standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The guidance will be effective in the first quarter of 2019 and allows for early adoption. The Company is continuing to evaluate the standard; however, the Company does not expect its adoption to have a material impact on the consolidated financial statements, as lessor accounting for leases will be substantially equivalent to existing guidance.

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718), Improvements toEmployee Share-Based Payment Accounting, that simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. The guidance is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those years. The Company did not experience a material impact from adopting this new guidance.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force), that clarifies how certain cash receipts and cash payments should be classified on the statement of cash flows. This ASU addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The guidance is effective for annual reporting periods beginning after

12

PART I — FINANCIAL INFORMATION (continued)

Item 1. Financial Statements (continued)

STEADFAST INCOME REIT, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2017

(unaudited)

December 15, 2017, and interim periods within those years. Early adoption is permitted. The Company did not experience a material impact from adopting this new guidance.

In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU No. 2016-18”). ASU No. 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, restricted cash and restricted cash equivalents. Therefore, amounts generally described as restricted cash should be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. ASU No. 2016-18 is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements and related disclosures.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the definition of business, that clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of businesses. This ASU provides a screen to determine when a set is not a business. If the screen is not met, it (1) requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) removes the evaluation of whether a market participant could replace the missing elements. The guidance is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those years. Early adoption is permitted. Upon adoption of this new guidance during the three months ended March 31, 2017, the Company did not experience a material impact.

3. Real Estate

As of March 31, 2017, the Company owned 65 multifamily properties, encompassing in the aggregate 16,709 apartment homes and 25,973 square feet of rentable commercial space. The total purchase price of the Company’s real estate portfolio, including development and construction costs for apartment homes constructed by the Company, was $1,644,189,381. As of March 31, 2017 and December 31, 2016, the Company’s portfolio was approximately 93.6% and 93.5% occupied and the average monthly rent was $1,025 and $1,026, respectively.

As of March 31, 2017 and December 31, 2016, accumulated depreciation and amortization related to the Company’s consolidated real estate properties and related intangibles were as follows:

	March 31, 2017
	Assets
	Land		Building and Improvements			Other Intangible Assets			Total Real Estate
Investments in real estate	$	174,102,422	$	1,521,600,455		$	2,644,263		$	1,698,347,140
Less: Accumulated depreciation and amortization	—		(250,111,351		)	(584,323		)	(250,695,674		)
Net investments in real estate and related lease intangibles	$	174,102,422	$	1,271,489,104		$	2,059,940		$	1,447,651,466

13

PART I — FINANCIAL INFORMATION (continued)

Item 1. Financial Statements (continued)

STEADFAST INCOME REIT, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2017

(unaudited)

	December 31, 2016
	Assets
	Land		Building and Improvements			Other Intangible Assets			Total Real Estate
Investments in real estate	$	174,102,422	$	1,517,532,273		$	2,644,263		$	1,694,278,958
Less: Accumulated depreciation and amortization	—		(232,198,052		)	(546,031		)	(232,744,083		)
Net investments in real estate and related lease intangibles	$	174,102,422	$	1,285,334,221		$	2,098,232		$	1,461,534,875

Depreciation and amortization expenses were $17,953,723 and $16,947,268 for the three months ended March 31, 2017 and 2016, respectively.

Depreciation of the Company’s buildings and improvements were $17,915,431 and $16,908,976 for the three months ended March 31, 2017 and 2016, respectively.

Amortization of the Company’s other intangible assets for the three months ended March 31, 2017 and 2016 were $38,292 and $38,292, respectively.

The future amortization of the Company’s acquired other intangible assets as of March 31, 2017 and thereafter is as follows:

April 1 through December 31, 2017	$	114,876
2018	153,168
2019	153,168
2020	153,168
2021	153,168
Thereafter	1,332,392
	$	2,059,940

Operating Leases

As of March 31, 2017, the Company’s real estate portfolio comprised 16,709 residential apartment homes and was 95.8% leased by a diverse group of residents. For each of the three months ended March 31, 2017 and 2016, the Company’s real estate portfolio earned approximately 99% and 1% of its rental income from residential tenants and commercial office tenants, respectively. The residential tenant lease terms consist of lease durations equal to 12 months or less. The commercial office tenant leases consist of remaining lease durations varying from 2.17 to 8.01 years.

Some residential and commercial leases contain provisions to extend the lease agreements, options for early termination after paying a specified penalty and other terms and conditions as negotiated. The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. Generally, upon the execution of a lease, the Company requires security deposits from tenants in the form of a cash deposit and/or a letter of credit for commercial tenants. Amounts required as security deposits vary depending upon the terms of the respective leases and the creditworthiness of the tenant, but generally are not significant amounts. Therefore, exposure to credit risk exists to the extent that a receivable from a tenant exceeds the amount of its security deposit. Security deposits received in cash related to tenant leases are included in accounts payables and accrued liabilities in the accompanying consolidated balance sheets and totaled $5,083,549 and $5,047,792 as of March 31, 2017 and December 31, 2016, respectively.

14

PART I — FINANCIAL INFORMATION (continued)

Item 1. Financial Statements (continued)

STEADFAST INCOME REIT, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2017

(unaudited)

The future minimum rental receipts from the Company’s properties under non-cancelable operating leases attributable to commercial office tenants as of March 31, 2017 and thereafter is as follows:

April 1 through December 31, 2017	$	191,526
2018	259,143
2019	180,858
2020	74,313
2021	76,535
Thereafter	264,345
	$	1,046,720

As of March 31, 2017 and December 31, 2016, no tenant represented over 10% of the Company’s annualized base rent and there were no significant industry concentrations with respect to its commercial leases.

4. Other Assets

As of March 31, 2017 and December 31, 2016, other assets consisted of:

	March 31, 2017		December 31, 2016
Prepaid expenses	$	1,929,301	$	3,041,353
Interest rate cap agreements (Note 11)	298,888		618,841
Other deposits	1,122,853		1,126,568
Other assets	$	3,351,042	$	4,786,762

15

PART I — FINANCIAL INFORMATION (continued)

Item 1. Financial Statements (continued)

STEADFAST INCOME REIT, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2017

(unaudited)

5. Debt

Mortgage Notes Payable

The following is a summary of mortgage notes payable secured by real property as of March 31, 2017 and     December 31, 2016:

	March 31, 2017
			Interest Rate Range				Weighted Average Interest Rate
Type	Number of Instruments	Maturity Date Range	Minimum		Maximum				Principal Outstanding
Mortgage notes payable - fixed	37	10/1/2017 - 10/1/2056	3.19	%	5.94	%	4.06	%	$	469,122,776
Mortgage notes payable - variable(1)	21	8/31/2017 - 1/1/2026	1-Mo LIBOR + 1.65%		1-Mo LIBOR + 2.65%		3.26	%	517,774,385
Total mortgage notes payable	58						3.63	%	986,897,161
Premium, net(2)									1,899,980
Deferred financing costs, net(3)									(6,030,001		)
Total mortgage notes payable, net									$	982,767,140

	December 31, 2016
			Interest Rate Range				Weighted Average Interest Rate
Type	Number of Instruments	Maturity Date Range	Minimum		Maximum				Principal Outstanding
Mortgage notes payable - fixed	37	10/1/2017 - 10/1/2056	3.19	%	5.94	%	4.06	%	$	471,344,145
Mortgage notes payable - variable(1)	21	8/31/2017 - 1/1/2026	1-Mo LIBOR + 1.65%		1-Mo LIBOR + 2.65%		3.05	%	517,885,675
Total mortgage notes payable	58						3.52	%	989,229,820
Premium, net(2)									2,208,619
Deferred financing costs, net(3)									(6,358,285		)
Total mortgage notes payable, net									$	985,080,154

_______________

(1) See Note 11 for a discussion of the interest rate cap agreements used to manage the exposure to interest rate movement on the Company’s variable rate loans.

16

PART I — FINANCIAL INFORMATION (continued)

Item 1. Financial Statements (continued)

STEADFAST INCOME REIT, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2017

(unaudited)

(2) The following table summarizes the debt premiums as of March 31, 2017, including the unamortized portion included in the principal balance as well as amounts amortized as an offset to interest expense in the accompanying consolidated statements of operations:

Unamortized Portion of Net Debt Premium as of March 31, 2017		Amortization of Net Debt Premium During the Three Months Ended March 31,
		2017		2016
$	1,899,980	$	308,639	$	308,698

(3) The following table summarizes the deferred financing costs, net related to mortgage notes payable as of March 31, 2017 and December 31, 2016:

	March 31, 2017			December 31, 2016
Deferred financing costs	$	10,104,244		$	10,104,244
Less: accumulated amortization	(4,074,243		)	(3,745,959		)
Deferred financing costs, net	$	6,030,001		$	6,358,285

Refinancing Transactions

On June 29 and June 30, 2016, 14 wholly-owned subsidiaries of the Company terminated the existing mortgage loans with their respective lenders for an aggregate principal amount of $283,313,677 and entered into new loan agreements (each, a “Loan Agreement”) with, as applicable, PNC Bank, National Association (“PNC Bank”) and Berkeley Point Capital LLC (“Berkeley” and, together with PNC Bank, the “Lenders”) for an aggregate principal amount of $358,002,000 (the “June Refinancing Transactions”). On July 29, 2016, nine wholly-owned subsidiaries of the Company also entered into a credit agreement (the “Credit Agreement”) with PNC Bank in connection with the refinancing of certain additional mortgage loans as further detailed below. Further, on August 30, 2016 and September 29, 2016, three wholly-owned subsidiaries of the Company terminated the existing mortgage loans with an aggregate principal amount of $61,575,025 and entered into new mortgage notes for an aggregate principal amount of $63,620,600 (together with the June Refinancing Transactions, the “Refinancing Transactions”).

In the June Refinancing Transactions, each Loan Agreement was made pursuant to the Freddie Mac Capital Markets Execution Program (the “CME”), as evidenced by a multifamily note. Pursuant to the CME, the applicable Lender originates the mortgage loan and then transfers the loan to the Federal Home Loan Mortgage Association. Each Loan Agreement provides for a term loan with a maturity date of July 1, 2023, unless the maturity date is accelerated in accordance with its terms. Each loan accrues interest at one-month London Interbank Offered Rate (“LIBOR”) plus 2.31%. The entire outstanding principal balance and any accrued and unpaid interest on each of the Loans are due on the maturity date. Interest and principal payments on the loans are payable monthly in arrears on specified dates as set forth in each Loan Agreement. Monthly payments are due and payable on the first day of each month, commencing August 1, 2016.

17

PART I — FINANCIAL INFORMATION (continued)

Item 1. Financial Statements (continued)

STEADFAST INCOME REIT, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2017

(unaudited)

Credit Facility

On July 29, 2016, nine wholly-owned subsidiaries of the Company entered into the Credit Agreement and a multifamily note with PNC Bank (the Credit Agreement, multifamily note, loan and security agreements, mortgages and guaranty, collectively referred to herein as the “Loan Documents”) that provide for a new credit facility in an amount not to exceed $350,000,000 to refinance certain of the Company’s existing mortgage loans. The credit facility has a maturity date of August 1, 2021, subject to extension, as further described in the Credit Agreement. Advances made under the credit facility are secured by the properties set out in the schedule below (the “Collateral Pool Property”), pursuant to a mortgage deed of trust with the nine wholly-owned subsidiaries of the Company in favor of PNC Bank.

The credit facility accrues interest at the one-month LIBOR plus (1) the servicing spread of 0.05% and (2) the net spread, based on the debt service coverage ratio, of between 1.73% and 1.93%, as further described in the Credit Agreement. The entire outstanding principal balance and any accrued and unpaid interest on the credit facility are due on the maturity date. Interest only payments on the credit facility are payable monthly in arrears and are due and payable on the first day of each month, commencing September 1, 2016. The Company’s nine wholly-owned subsidiaries may voluntarily prepay all or a portion of the amounts advanced under the Loan Documents. Notwithstanding the foregoing, in the event a Collateral Pool Property is released or the Credit Agreement is terminated, a termination fee is due and payable by the Company’s nine wholly-owned subsidiaries. In certain instances of a breach of the Credit Agreement, the Company guarantees to PNC Bank the full and prompt payment and performance when due of all amounts for which the Company’s nine wholly-owned subsidiaries are personally liable under the Loan Documents, in addition to all costs and expenses incurred by PNC Bank in enforcing such guaranty. The Company paid loan origination fees to PNC Bank of $1,293,186, and the Advisor earned a refinancing fee of $1,175,624.

As of March 31, 2017 and December 31, 2016, the advances obtained under the credit facility on July 29, 2016 are summarized in the following table:

	Amount of Advance as of
Collateralized Property(1)	March 31, 2017			December 31, 2016
Ashley Oaks Apartment Homes	$	24,867,500		$	24,867,500
Trails at Buda Ranch	21,025,000			21,025,000
Deer Valley Apartments	22,982,500			22,982,500
Carrington Park at Huffmeister	20,430,500			20,430,500
Carrington Place	27,535,500			27,535,500
Carrington at Champion Forest	25,121,250			25,121,250
Audubon Park Apartments	16,602,500			16,602,500
Oak Crossing	17,980,000			17,980,000
Meritage at Steiner Ranch	58,580,000			58,580,000
	$	235,124,750		$	235,124,750
Deferred financing costs, net on credit facility(2)	(2,346,212		)	(2,488,624		)
Credit facility, net	$	232,778,538		$	232,636,126

18

PART I — FINANCIAL INFORMATION (continued)

Item 1. Financial Statements (continued)

STEADFAST INCOME REIT, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2017

(unaudited)

___________

(1) Each property is pledged as collateral for repayment of all amounts advanced under the credit facility.

(2) Accumulated amortization related to deferred financing costs for the credit facility as of March 31, 2017 and December 31, 2016, was $575,934 and $433,522, respectively.

Maturity and Interest

The following is a summary of the Company’s aggregate maturities as of March 31, 2017:

					Maturities During the Years Ending December 31,
Contractual Obligation	Total		Remainder of 2017		2018		2019		2020		2021		Thereafter
Principal payments on outstanding debt obligations(1)	$	1,222,021,911	$	47,836,071	$	75,880,559	$	101,893,298	$	87,550,294	$	278,217,869	$	630,643,820

________________

(1) Projected principal payments on outstanding debt obligations are based on the terms of the notes payable agreements. Amounts exclude the amortization of the deferred financing costs and debt premiums associated with certain notes payable.

The Company’s notes payable contain customary financial and non-financial debt covenants. As of March 31, 2017 and December 31, 2016, the Company was in compliance with all financial and non-financial debt covenants. The Company has significant debt maturing within one year from the date the consolidated financial statements are available to be issued. Although the Company does not currently have the liquid funds necessary to repay the debt at maturity, it believes that it is probable that it will be able to refinance all or a portion of the debt prior to maturity.

For the three months ended March 31, 2017 and 2016, the Company incurred interest of $10,848,036 and $10,072,744. Interest expense for the three months ended March 31, 2017 and 2016 includes amortization of deferred financing costs of $470,696 and $382,044, amortization of loan premiums and discounts of $308,639 and $308,698, net unrealized loss from the change in fair value of interest rate cap agreements of $319,953 and $232,712 and capitalized interest of $0 and $25,904, respectively. The capitalized interest is included in real estate on the consolidated balance sheets.

Interest expense of $3,548,031 and $3,444,162 was payable as of March 31, 2017 and December 31, 2016, respectively, and is included in accounts payable and accrued liabilities in the accompanying consolidated balance sheets.

6. Stockholders’ Equity

General

Under the Company’s Third Articles of Amendment and Restatement (the “Charter”), the total number of shares of capital stock authorized for issuance is 1,100,000,000 shares, consisting of 999,999,000 shares of common stock with a par value of $0.01 per share, 1,000 shares of convertible stock with a par value of $0.01 per share and 100,000,000 shares designated as preferred stock with a par value of $0.01 per share.

19

PART I — FINANCIAL INFORMATION (continued)

Item 1. Financial Statements (continued)

STEADFAST INCOME REIT, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2017

(unaudited)

Common Stock

The shares of the Company’s common stock entitle the holders to one vote per share on all matters upon which stockholders are entitled to vote, to receive dividends and other distributions as authorized by the Company’s board of directors in accordance with the Maryland General Corporation Law and to all rights of a stockholder pursuant to the Maryland General Corporation Law. The common stock has no preferences or preemptive, conversion or exchange rights.

During 2009, the Company issued 22,223 shares of common stock to the Sponsor for $200,007. From inception through March 31, 2017, the Company had issued 76,732,395 shares of common stock in its Private Offering and Public Offering for offering proceeds of $679,572,220, net of offering costs of $95,845,468, including 4,073,759 shares of common stock pursuant to the DRP, for total proceeds of $39,580,847. Offering costs primarily consisted of selling commissions and dealer manager fees. The Company terminated its Public Offering on December 20, 2013, but continued to offer shares pursuant to the DRP through November 30, 2014.

The issuance and vesting activity for the three months ended March 31, 2017 and for the year ended December 31, 2016 for the restricted stock issued to the Company’s independent directors as compensation for services in connection with their re-election to the board of directors at the Company’s annual meeting is as follows:

	For the Three Months Ended March 31, 2017	For the Year Ended December 31, 2016
Nonvested shares at the beginning of the period	11,875	11,250
Granted shares	—	7,500
Vested shares	—	(6,875	)
Nonvested shares at the end of the period	11,875	11,875

The weighted average fair value of restricted stock issued to the Company’s independent directors for the three months ended March 31, 2017 and for the year ended December 31, 2016 is as follows:

Grant Year	Weighted Average Fair Value
2016	$	11.44
2017	n/a

The shares of restricted common stock vest and become non-forfeitable in four equal annual installments beginning on the date of grant and ending on the third anniversary of the date of grant and will become fully vested and become non-forfeitable on the earlier to occur of (1) the termination of the independent director’s service as a director due to death or disability, or (2) a change in control of the Company and as otherwise provided in the Incentive Award Plan, as defined below.

Included in general and administrative expenses is $15,030 and $12,864 for the three months ended March 31, 2017 and 2016, respectively, for compensation expense related to the issuance of restricted common stock. The weighted average remaining vesting term of the restricted common stock is 1.47 years as of March 31, 2017. As of March 31, 2017, the compensation expense related to the issuance of the restricted common stock not vested was $90,080.

On June 11, 2014, the Company entered into a restricted stock agreement with the Advisor whereby the Company issued to the Advisor 488,281.25 restricted shares of the Company’s common stock at a fair market value of $10.24 per share in satisfaction of certain deferred fees due to the Advisor in the aggregate amount of $5,000,000. Pursuant to the restricted stock

20

PART I — FINANCIAL INFORMATION (continued)

Item 1. Financial Statements (continued)

STEADFAST INCOME REIT, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2017

(unaudited)

agreement, the shares of restricted stock vested and became non-forfeitable 50% at December 31, 2015 and 50% at December 31, 2016. The fair value of the vested common stock issued to the Advisor as of March 31, 2017 and December 31, 2016 of $5,637,207 was recorded in stockholders’ equity in the accompanying consolidated balance sheets. Included in general and administrative expenses on the accompanying consolidated statements of operations is $0 and $113,607 for the three months ended March 31, 2017 and 2016, respectively, for the change in value of restricted common stock issued to the Advisor.

Convertible Stock

The Company issued 1,000 shares of Convertible Stock to the Advisor for $1,000. The Convertible Stock will convert into shares of the Company’s common stock if and when: (A) the Company has made total distributions on the then outstanding shares of common stock equal to the original issue price of those shares plus an 8.0% cumulative, non-compounded, annual return on the original issue price of those shares, (B) subject to specified conditions, the Company lists the common stock for trading on a national securities exchange or (C) the Advisory Agreement is terminated or not renewed by the Company (other than for “cause” as defined in the Advisory Agreement). A “listing” will also be deemed to have occurred on the effective date of any merger of the Company in which the consideration received by the holders of the Company’s common stock is the securities of another issuer that are listed on a national securities exchange. Upon conversion, each share of Convertible Stock will convert into a number of shares of common stock equal to 1/1000 of the quotient of (A) 10% of the amount, if any, by which (1) the Company’s “enterprise value” (as defined in the Charter) plus the aggregate value of distributions paid to date on the outstanding shares of common stock exceeds (2) the aggregate purchase price paid by the stockholders for those shares plus an 8.0% cumulative, non-compounded, annual return on the original issue price of those shares, divided by (B) the Company’s enterprise value divided by the number of outstanding shares of common stock, in each case calculated as of the date of the conversion. In the event of a termination or non-renewal of the Advisory Agreement by the Company for cause, the Convertible Stock will be redeemed by the Company for $1.00.

Preferred Stock

The Charter also provides the Company’s board of directors with the authority to issue one or more classes or series of preferred stock, and prior to the issuance of such shares of preferred stock, the board of directors shall have the power from time to time to classify or reclassify, in one or more series, any unissued shares and designate the preferences, rights and privileges of such shares of preferred stock. The Company’s board of directors is authorized to amend the Charter, without the approval of the stockholders, to increase the aggregate number of authorized shares of capital stock or the number of shares of any class or series that the Company has authority to issue. As of March 31, 2017 and December 31, 2016, no shares of the Company’s preferred stock were issued and outstanding.

Distribution Reinvestment Plan

The Company’s board of directors had approved the DRP through which common stockholders could elect to reinvest an amount equal to the distributions declared on their shares of common stock in additional shares of the Company’s common stock in lieu of receiving cash distributions. The initial purchase price per share under the DRP was $9.50. Effective September 10, 2012, shares of the Company’s common stock were issued pursuant to the DRP at a price of $9.73 per share. Effective with distributions earned beginning on December 1, 2014, the Company’s board of directors elected to suspend the DRP. As a result, all distributions are paid in cash and not reinvested in shares of the Company’s common stock. The Company’s board of directors may, in its sole discretion, from time to time, reinstate the DRP, although there is no assurance as to if or when this will happen, and change the DRP price based upon changes in the Company’s estimated value per share and other factors that the Company’s board of directors deems relevant.

No sales commissions or dealer manager fees were payable on shares sold through the DRP.

21

PART I — FINANCIAL INFORMATION (continued)

Item 1. Financial Statements (continued)

STEADFAST INCOME REIT, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2017

(unaudited)

Share Repurchase Program and Redeemable Common Stock

The Company’s share repurchase program may provide an opportunity for stockholders to have their shares of common stock repurchased by the Company, subject to certain restrictions and limitations. No shares can be repurchased under the Company’s share repurchase program until after the first anniversary of the date of purchase of such shares; provided, however, that this holding period shall not apply to repurchases requested within two years after the death or disability of a stockholder.

The purchase price for shares repurchased under the Company’s share repurchase program is as follows:

Share Purchase Anniversary	Repurchase Price on Repurchase Date(1)
Less than 1 year	No Repurchase Allowed
1 year	92.5% of Estimated Value per Share(2)
2 years	95.0% of Estimated Value per Share(2)
3 years	97.5% of Estimated Value per Share(2)
4 years	100.0% of Estimated Value per Share(2)
In the event of a stockholder’s death or disability(3)	Average Issue Price for Shares(4)

________________

(1) As adjusted for any stock dividends, combinations, splits, recapitalizations or any similar transaction with respect to the shares of common stock.

(2) For purposes of the share repurchase program, the “Estimated Value per Share” will equal the most recently determined estimated value per share determined by the Company’s board of directors.

(3) The required one year holding period to be eligible to redeem shares under the Company’s share repurchase program does not apply in the event of death or disability of a stockholder.

(4) The purchase price per share for shares redeemed upon the death or disability of a stockholder will be equal to the average issue price per share for all of the stockholder’s shares.

The purchase price per share for shares repurchased pursuant to the share repurchase program is further reduced by the aggregate amount of net proceeds per share, if any, distributed to the Company’s stockholders prior to the repurchase date as a result of the sale of one or more of the Company’s assets that constitutes a return of capital distribution as a result of such sales.

Repurchases of shares of the Company’s common stock are made quarterly upon written request to the Company at least 15 days prior to the end of the applicable quarter during which the share repurchase program is in effect. Repurchase requests are honored approximately 30 days following the end of the applicable quarter (the “Repurchase Date”). Stockholders may withdraw their repurchase request at any time up to three business days prior the end of the applicable quarter.

During the three months ended March 31, 2017, the Company redeemed a total of 183,955 shares with a total redemption value of $2,000,000 and received net requests for the redemption of 519,696 shares with a total net redemption value of $5,967,020. During the three months ended March 31, 2016, the Company redeemed a total of 99,243 shares with a total redemption value of $1,000,000, and received net requests for the redemption of 347,512 shares with a total net redemption value of $3,763,312. As of March 31, 2017 and 2016, the Company’s total outstanding redemption requests received that were subject to the Company’s limitations on redemptions (discussed below) were 1,646,078 shares and 702,345 shares, respectively, with a total net redemption value of $19,009,693 and $7,759,225, respectively.

22

PART I — FINANCIAL INFORMATION (continued)

Item 1. Financial Statements (continued)

STEADFAST INCOME REIT, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2017

(unaudited)

The Company cannot guarantee that the funds set aside for the share repurchase program will be sufficient to accommodate all repurchase requests made in any quarter. In the event that the redemption requests exceed the Company’s limitations on redemptions (discussed below) or the Company does not have sufficient funds available to repurchase all of the shares of the Company’s common stock for which repurchase requests have been submitted in any quarter, priority will be given to redemption requests in the case of the death or disability of a stockholder. If the Company repurchases less than all of the shares subject to a repurchase request in any quarter, with respect to any shares which have not been repurchased, the requesting stockholder could (1) withdraw the request for repurchase or (2) ask that the Company honor the request in a future quarter, if any, when such repurchases may be made pursuant to the limitations of the share repurchase program and when sufficient funds were available. Such pending requests would be honored among all requests for redemptions in any given redemption period as follows: first, pro rata as to redemptions sought upon a stockholder’s death or disability; and, next, pro rata as to other redemption requests.

The Company is not obligated to repurchase shares of the Company’s common stock under the share repurchase program. In no event shall redemptions under the share repurchase program exceed 5% of the weighted average number of shares of the Company’s common stock outstanding during the prior calendar year. Effective July 1, 2015, the Company’s board of directors determined to limit the amount of shares repurchased pursuant to the share repurchase program to an amount not to exceed $2,000,000 during the quarter beginning July 1, 2015, with each subsequent quarter not to exceed $1,000,000. On August 9, 2016, the Company’s board of directors approved and authorized an increase to the value of the shares that may be repurchased pursuant to the share repurchase program from $1,000,000 to $2,000,000 per quarter, effective on the October 2016 repurchase date. There is no fee in connection with a repurchase of shares of the Company’s common stock. As of March 31, 2017, the Company has recognized redemptions payable of $2,000,000, which is included in accounts payable and accrued liabilities on the accompanying consolidated balance sheets.

In addition, the Company’s board of directors may, in its sole discretion, amend, suspend, or terminate the share repurchase program at any time upon 30 days’ notice to the Company’s stockholders if it determines that the funds available to fund the share repurchase program are needed for other business or operational purposes or that amendment, suspension or termination of the share repurchase program is in the best interest of the Company’s stockholders. Therefore, stockholders may not have the opportunity to make a repurchase request prior to any potential termination of the Company’s share repurchase program.

Distributions Declared

Distributions declared (1) accrued daily to stockholders of record as of the close of business on each day, (2) were payable in cumulative amounts on or before the third day of each calendar month with respect to the prior month and (3) were calculated at a rate of $0.001964 per share per day during the three months ended March 31, 2017 and 2016.

Distributions declared for the three months ended March 31, 2017 and 2016 were $13,447,122 and $13,649,330, all of which were attributable to cash distributions.

As of March 31, 2017 and December 31, 2016, $4,627,865 and $4,625,355 distributions declared were payable.

Distributions Paid

For the three months ended March 31, 2017 and 2016, the Company paid cash distributions of $13,444,612 and $13,669,663, which related to distributions declared for each day in the period from December 1, 2016 through February 28, 2017 and December 1, 2015 through February 29, 2016, respectively. All such distributions were paid in cash.

23

PART I — FINANCIAL INFORMATION (continued)

Item 1. Financial Statements (continued)

STEADFAST INCOME REIT, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2017

(unaudited)

7. Earnings (Loss) Per Share

The following table presents a reconciliation of net loss attributable to common stockholders and shares used in calculating basic and diluted earnings (loss) per share for the three months ended March 31, 2017 and 2016:

	Three Months Ended March 31,
	2017			2016
Net loss attributable to the Company	$	(5,644,875	)	$	(3,618,142	)
Less: dividends declared on participating securities	2,099			45,505
Net loss attributable to common stockholders	(5,646,974		)	(3,663,647		)
Weighted average common shares outstanding — basic and diluted	76,066,450			76,350,555
Loss per common share — basic and diluted	$	(0.07	)	$	(0.05	)

The Company excluded all unvested restricted common shares outstanding issued to the Advisor and the Company’s independent directors from the calculation of diluted loss per common share as the effect would have been antidilutive.

8. Related Party Arrangements

The Company has entered into the Advisory Agreement with the Advisor. Pursuant to the Advisory Agreement, the Company is obligated to pay the Advisor specified fees upon the provision of certain services related to the investment of funds in real estate and real estate-related investments, the management of the Company’s investments and for other services (including, but not limited to, the disposition of investments). Subject to the limitations described below, the Company is also obligated to reimburse the Advisor and its affiliates for organization and offering costs incurred by the Advisor and its affiliates on behalf of the Company, and the Company is obligated to reimburse the Advisor and its affiliates for acquisition and origination expenses and certain operating expenses incurred on behalf of the Company or incurred in connection with providing services to the Company.

24

PART I — FINANCIAL INFORMATION (continued)

Item 1. Financial Statements (continued)

STEADFAST INCOME REIT, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2017

(unaudited)

Amounts attributable to the Advisor and its affiliates incurred for the three months ended March 31, 2017 and 2016 and amounts that are payable (prepaid) to the Advisor and its affiliates as of March 31, 2017 and December 31, 2016 are as follows:

	Incurred For the Three Months Ended March 31,				Payable (Prepaid) as of
	2017		2016		March 31, 2017			December 31, 2016
Consolidated Statements of Operations:
Expensed
Investment management fees(1)	$	3,581,155	$	3,501,124	$	38,717		$	1,185,001
Property management
Fees(1)	1,606,536		1,571,982		537,572			534,056
Reimbursement of onsite personnel(2)	4,831,469		4,564,368		1,015,869			805,274
Other fees(1)	434,332		449,317		51,597			54,679
Other fees - property operations(2)	46,836		—		—			—
Other fees - G&A(3)	40,581		—		—			—
Other operating expenses(3)	434,878		346,719		227,517			184,954
Consolidated Balance Sheets:
Capitalized
Construction management
Fees(4)	197,879		245,033		8,645			16,431
Reimbursement of labor costs(4)	65,471		83,050		7,665			7,171
Prepaid insurance deductible account(5)	62,092		37,245		(62,093		)	(124,185		)
	$	11,301,229	$	10,798,838	$	1,825,489		$	2,663,381

________________

(1) Included in fees to affiliates in the accompanying consolidated statements of operations.

(2) Included in operating, maintenance and management in the accompanying consolidated statements of operations.

(3) Included in general and administrative expenses in the accompanying consolidated statements of operations.

(4) Included in building and improvements in the accompanying consolidated balance sheets.

(5) Included in other assets in the accompanying consolidated balance sheets upon payment. The amortization of the prepaid insurance deductible account is included in general and administrative expenses in the accompanying consolidated statements of operations.

Investment Management Fee

The Company pays the Advisor a monthly investment management fee equal to one-twelfth of 0.80% of (1) the cost of real properties and real estate-related assets acquired directly by the Company or (2) the Company’s allocable cost of each real property or real estate-related asset acquired through a joint venture. Such fee is calculated including acquisition fees, acquisition expenses and any debt attributable to such investments, or the Company’s proportionate share thereof in the case of

25

PART I — FINANCIAL INFORMATION (continued)

Item 1. Financial Statements (continued)

STEADFAST INCOME REIT, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2017

(unaudited)

investments made through joint ventures. The cost of real properties and real estate-related assets that have been sold by the Company during the applicable month is excluded from the fee.

Acquisition Fees and Expenses

The Company pays the Advisor an acquisition fee equal to 2.0% of (1) the cost of investment, as defined in the Advisory Agreement, in connection with the acquisition or origination of any type of real property or real estate-related asset acquired directly by the Company or (2) the Company’s allocable portion of the purchase price in connection with the acquisition or origination of any type of real property or real estate-related asset acquired through a joint venture, including any acquisition and origination expenses and any debt attributable to such investments.

In addition to acquisition fees, the Company reimburses the Advisor for amounts directly incurred by the Advisor or its affiliates, including personnel-related costs for acquisition due diligence, legal and non-recurring management services, and amounts the Advisor pays to third parties in connection with the selection, acquisition or development of a property or acquisition of real estate-related assets, whether or not the Company ultimately acquires the property or the real estate-related assets.

The Charter limits the Company’s ability to pay acquisition fees if the total of all acquisition fees and expenses relating to the purchase would exceed 6.0% of the contract purchase price. Under the Charter, a majority of the Company’s board of directors, including a majority of the independent directors, is required to approve any acquisition fees (or portion thereof) that would cause the total of all acquisition fees and expenses relating to an acquisition to exceed 6.0% of the contract purchase price. In connection with the purchase of securities, the acquisition fee may be paid to an affiliate of the Advisor that is registered as a FINRA member broker-dealer if applicable FINRA rules would prohibit the payment of the acquisition fee to a firm that is not a registered broker-dealer.

Property Management Fees and Expenses

The Company has entered into Property Management Agreements with Steadfast Management Company, Inc., an affiliate of the Sponsor (the “Property Manager”), in connection with the acquisition of each of the Company’s properties (other than EBT Lofts, Library Lofts and Stuart Hall Lofts, which are managed by an unaffiliated third-party management company). The property management fee payable with respect to each property under the Property Management Agreements (each a “Property Management Agreement”) ranges from 2.50% to 3.75% of the annual gross revenue collected, which is usual and customary for comparable property management services rendered to similar properties in similar geographic markets, as determined by the Advisor and approved by a majority of the members of the Company’s board of directors, including a majority of the independent directors. The Property Manager also receives an oversight fee of 1% of gross revenues at certain of the properties at which it does not serve as a property manager. Generally, each Property Management Agreement has an initial one year term and will continue thereafter on a month-to-month basis unless either party gives a 60 day prior notice of its desire to terminate the Property Management Agreement, provided that the Company may terminate the Property Management Agreement at any time upon a determination of gross negligence, willful misconduct or bad acts of the Property Manager or its employees or upon an uncured breach of the Property Management Agreement upon 30 days prior written notice to the Property Manager.

In addition to the property management fee, the Property Management Agreements also specify certain other fees payable to the Property Manager or its affiliates, including fees for benefit administration, information technology infrastructure, licenses, and support and training services. The Company also reimburses the Property Manager for the salaries and related benefits of on-site property management employees.

26

PART I — FINANCIAL INFORMATION (continued)

Item 1. Financial Statements (continued)

STEADFAST INCOME REIT, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2017

(unaudited)

Construction Management

The Company has entered into Construction Management Agreements with Pacific Coast Land and Construction, Inc., an affiliate of the Sponsor (the “Construction Manager”), in connection with the planned capital improvements and renovation for certain of the Company’s properties. The construction management fee payable with respect to each property under the Construction Management Agreements (each a “Construction Management Agreement”) ranges from 5.0% to 12.0% of the costs of the improvements for which the Construction Manager has planning and oversight authority. Generally, each Construction Management Agreement has a term equal to the planned renovation timeline unless either party gives a 30 day prior notice of its desire to terminate the Construction Management Agreement. Construction management fees are capitalized to the respective real estate properties in the period in which they are incurred, as such costs relate to capital improvements and renovations for units taken out of service while they undergo the planned renovation.

The Company may also reimburse the Construction Manager for the salaries and related benefits of certain of its employees for time spent working on capital improvements and renovations at its properties.

Prepaid Insurance Deductible Account

The Company deposits amounts with an affiliate of the Sponsor to fund a prepaid insurance deductible account to cover the cost of required insurance deductibles across all properties of the Company and other affiliated entities. Upon filing a major claim, proceeds from the insurance deductible account may be used by the Company or another affiliate of the Sponsor.

Other Operating Expense Reimbursement

In addition to the various fees paid to the Advisor, the Company is obligated to pay directly or reimburse all expenses incurred by the Advisor in providing services to the Company, including the Company’s allocable share of the Advisor’s overhead, such as rent, employee costs, utilities and information technology costs. The Company will not reimburse the Advisor for employee costs in connection with services for which the Advisor or its affiliates receive acquisition fees or disposition fees or for the salaries the Advisor pays to the Company’s executive officers.

The Charter limits the Company’s total operating expenses during any four fiscal quarters to the greater of 2% of the Company’s average invested assets or 25% of the Company’s net income for the same period (the “2%/25% Limitation”). The Company may reimburse the Advisor, at the end of each fiscal quarter, for operating expenses incurred by the Advisor; provided, however, that the Company shall not reimburse the Advisor at the end of any fiscal quarter for operating expenses that exceed the 2%/25% Limitation unless the independent directors have determined that such excess expenses were justified based on unusual and non-recurring factors. The Advisor must reimburse the Company for the amount by which the Company’s operating expenses for the preceding four fiscal quarters then ended exceed the 2%/25% Limitation unless the independent directors have determined that such excess expenses were justified. For purposes of determining the 2%/25% Limitation amount, “average invested assets” means the average monthly book value of the Company’s assets invested directly or indirectly in equity interests and loans secured by real estate during the 12-month period before deducting depreciation, bad debts or other non-cash reserves. “Total operating expenses” means all expenses paid or incurred by the Company that are in any way related to the Company’s operation, including the Company’s allocable share of Advisor overhead and investment management fees, but excluding (a) the expenses of raising capital such as organization and offering expenses, legal, audit, accounting, underwriting, brokerage, listing, registration and other fees, printing and other such expenses and taxes incurred in connection with the issuance, distribution, transfer, listing and registration of shares of the Company’s common stock; (b) interest payments; (c) taxes; (d) non-cash expenditures such as depreciation, amortization and bad debt reserves; (e) reasonable incentive fees based on the gain in the sale of the Company’s assets; (f) acquisition fees and acquisition expenses (including expenses relating to potential acquisitions that the Company does not close); (g) real estate commissions on the

27

PART I — FINANCIAL INFORMATION (continued)

Item 1. Financial Statements (continued)

STEADFAST INCOME REIT, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2017

(unaudited)

resale of investments; and (h) other expenses connected with the acquisition, disposition, management and ownership of investments (including the costs of foreclosure, insurance premiums, legal services, maintenance, repair and improvement of real property).

At March 31, 2017, the Company’s allocable share of the Advisor’s overhead expenses did not exceed the 2%/25% Limitation test.

Disposition Fee

The Company will pay the Advisor a disposition fee in connection with a sale of a property or real estate-related asset and in the event of the sale of the entire Company (a “Final Liquidity Event”), in either case when the Advisor or its affiliates provides a substantial amount of services as determined by a majority of the Company’s independent directors. With respect to a sale of a property or real estate-related asset, the Company will pay the Advisor a disposition fee equal to 1.5% of the contract sales price of the investment sold. With respect to a Final Liquidity Event, the Company will pay the Advisor a disposition fee equal to (i) 0.5% of the total consideration paid in a Final Liquidity Event if the price per share paid to stockholders is less than or equal to $9.00; (ii) 0.75% of the total consideration paid in a Final Liquidity Event if the price per share paid to stockholders is between $9.01 and $10.24; (iii) 1.00% of the total consideration paid in a Final Liquidity Event if the price per share paid to stockholders is between $10.25 and $11.24; (iv) 1.25% of the total consideration paid in a Final Liquidity Event if the price per share paid to stockholders is between $11.25 and $12.00; and (v) 1.50% of the total consideration paid in a Final Liquidity Event if the price per share paid to stockholders is greater than or equal to $12.01. To the extent the disposition fee is paid upon the sale of any assets other than real property, it will be included as an operating expense for purposes of the 2%/25% Limitation. In connection with the sale of securities, the disposition fee may be paid to an affiliate of the Advisor that is registered as a FINRA member broker-dealer if applicable FINRA rules would prohibit the payment of the disposition fee to a firm that is not a registered broker-dealer. The Charter limits the maximum amount of the disposition fees payable to the Advisor for the sale of any real property to the lesser of one-half of the brokerage commission paid or 3% of the contract sales price, but in no event shall the total real estate commissions paid, including any disposition fees payable to the Advisor, exceed 6% of the contract sales price.

Restricted Stock Agreement

On June 11, 2014, the Company entered into a restricted stock agreement with the Advisor whereby the Company issued to the Advisor 488,281.25 restricted shares of the Company’s common stock at a fair market value of $10.24 per share in satisfaction of certain deferred fees due to the Advisor in the aggregate amount of $5,000,000. Pursuant to the terms of the restricted stock agreement, the shares of restricted stock vested and became non-forfeitable 50% at December 31, 2015 and 50% at December 31, 2016.

9. Incentive Award Plan and Independent Director Compensation

The Company has adopted an incentive plan (the “Incentive Award Plan”) that provides for the grant of equity awards to its employees, directors and consultants and those of the Company’s affiliates. The Incentive Award Plan authorizes the grant of non-qualified and incentive stock options, restricted stock awards, restricted stock units, stock appreciation rights, dividend equivalents and other stock-based awards or cash-based awards. No awards have been granted under the Incentive Award Plan as of March 31, 2017 and December 31, 2016, except those awards granted to the independent directors as described below.

Under the Company’s independent directors’ compensation plan, which is a sub-plan of the Incentive Award Plan, each of the Company’s then independent directors was entitled to receive 5,000 shares of restricted common stock in connection with the initial meeting of the Company’s full board of directors and at the initial election of a new independent director. The

28

PART I — FINANCIAL INFORMATION (continued)

Item 1. Financial Statements (continued)

STEADFAST INCOME REIT, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2017

(unaudited)

Company’s initial board of directors, and each of the independent directors, agreed to delay the initial grant of restricted stock until the Company raised $2,000,000 in gross offering proceeds in the Private Offering. In addition, on the date following an independent director’s re-election to the Company’s board of directors, he or she receives 2,500 shares of restricted common stock. One-fourth of the shares of restricted common stock generally vest and become non-forfeitable upon issuance and the remaining portion will vest in three equal annual installments beginning on the date of grant and ending on the third anniversary of the date of grant; provided, however, that the restricted stock will become fully vested and become non-forfeitable on the earlier to occur of (1) the termination of the independent director’s service as a director due to his or her death or disability, or (2) a change in control of the Company and as otherwise provided in the Incentive Award Plan. On August 9, 2016, the Company granted 2,500 shares of restricted common stock to each of its three independent directors upon their re-election to the Company’s board of directors at the 2016 annual meeting of stockholders. The Company recorded stock-based compensation expense of $15,030 and $12,864 for the three months ended March 31, 2017 and 2016, respectively.

10. Commitments and Contingencies

Economic Dependency

The Company is dependent on the Advisor and its affiliates for certain services that are essential to the Company, including the identification, evaluation, negotiation, purchase, and disposition of real estate and real estate-related investments; management of the daily operations of the Company’s real estate and real estate-related investment portfolio; and other general and administrative responsibilities. In the event that these companies are unable to provide the respective services, the Company will be required to obtain such services from other sources.

Concentration of Credit Risk

The geographic concentration of the Company’s portfolio makes it particularly susceptible to adverse economic developments in the Houston, Texas, Chicago, Illinois and Austin, Texas apartment markets. Any adverse economic or real estate developments in these markets, such as business layoffs or downsizing, relocations of businesses, increased competition from other apartment communities, decrease in demand for apartments or any other changes, could adversely affect the Company’s operating results and its ability to make distributions to stockholders.

Environmental

As an owner of real estate, the Company is subject to various environmental laws of federal, state and local governments. The Company is not aware of any environmental liability that could have a material adverse effect on its financial condition or results of operations. However, changes in applicable environmental laws and regulations, the uses and conditions of properties in the vicinity of the Company’s properties, the activities of its tenants and other environmental conditions of which the Company is unaware with respect to the properties could result in future environmental liabilities.

Legal Matters

From time to time, the Company is subject, or party, to legal proceedings that arise in the ordinary course of its business. Management is not aware of any legal proceedings of which the outcome is reasonably likely to have a material adverse effect on the Company’s results of operations or financial condition nor is the Company aware of any such legal proceedings contemplated by government agencies.

29

PART I — FINANCIAL INFORMATION (continued)

Item 1. Financial Statements (continued)

STEADFAST INCOME REIT, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2017

(unaudited)

11. Derivative Financial Instruments

The Company uses interest rate derivatives with the objective of managing exposure to interest rate movements thereby minimizing the effect of interest rate changes and the effect they could have on future cash flows. Interest rate cap agreements are used to accomplish this objective. The following table provides the terms of the Company’s interest rate derivative instruments that were in effect at March 31, 2017 and December 31, 2016:

March 31, 2017
Type	Maturity Date Range	Based on	Number of Instruments	Notional Amount		Variable Rate		Weighted Average Rate Cap		Fair Value
Interest rate cap	4/1/2017 - 10/1/2019	One-Month LIBOR	43	$	973,400,000	0.98	%	2.75	%	$	298,888

December 31, 2016
Type	Maturity Date Range	Based on	Number of Instruments	Notional Amount		Variable Rate		Weighted Average Rate Cap		Fair Value
Interest rate cap	4/1/2017 - 10/1/2019	One-Month LIBOR	43	$	973,400,000	0.77	%	2.70	%	$	618,841

The interest rate cap agreements are not designated as cash flow hedges. Accordingly, the Company records any changes in the fair value of the interest rate cap agreements as interest expense. The change in the fair value of the interest rate cap agreements for the three months ended March 31, 2017 and 2016 resulted in an unrealized loss of $319,953 and $232,712, respectively, which is included in interest expense in the accompanying consolidated statements of operations. The fair value of interest rate cap agreements of $298,888 and $618,841 are included in other assets on the accompanying consolidated balance sheets.

12. Subsequent Events

Distributions Paid

On April 3, 2017, the Company paid distributions of $4,627,865, which related to distributions declared for each day in the period from March 1, 2017 through March 31, 2017. All such distributions were paid in cash.

On May 1, 2017, the Company paid distributions of $4,477,560, which related to distributions declared for each day in the period from April 1, 2017 through April 30, 2017. All such distributions were paid in cash.

Redemption

On April 28, 2017, the Company redeemed 180,226 shares of its common stock for a total redemption value of $2,000,000, or $11.10 per share, pursuant to the Company’s share repurchase program.

Distributions Declared

On May 9, 2017, the Company’s board of directors approved and authorized a daily distribution to stockholders of record as of the close of business on each day of the period commencing on July 1, 2017 and ending on September 30, 2017. The distributions will be equal to $0.001964 per share of the Company’s common stock. The distributions for each record date in

30

PART I — FINANCIAL INFORMATION (continued)

Item 1. Financial Statements (continued)

STEADFAST INCOME REIT, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2017

(unaudited)

July 2017, August 2017 and September 2017 will be paid in August 2017, September 2017 and October 2017, respectively. The distributions will be payable to stockholders from legally available funds therefor.

31

PART I — FINANCIAL INFORMATION (continued)

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with the accompanying financial statements of Steadfast Income REIT, Inc. and the notes thereto. As used herein, the terms “we,” “our” and “us” refer to Steadfast Income REIT, Inc., a Maryland corporation, and, as required by context, Steadfast Income REIT Operating Partnership, L.P., a Delaware limited partnership, which we refer to as our “operating partnership,” and to their subsidiaries.

Forward-Looking Statements

Certain statements included in this Quarterly Report on Form 10-Q that are not historical facts (including any statements concerning investment objectives, other plans and objectives of management for future operations or economic performance, or assumptions or forecasts related thereto) are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. These statements are only predictions. We caution that forward-looking statements are not guarantees. Actual events or our investments and results of operations could differ materially from those expressed or implied in any forward-looking statements. Forward-looking statements are typically identified by the use of terms such as “may,” “should,” “expect,” “could,” “intend,” “plan,” “anticipate,” “estimate,” “believe,” “continue,” “predict,” “potential” or the negative of such terms and other comparable terminology.

The forward-looking statements included herein are based upon our current expectations, plans, estimates, assumptions and beliefs, which involve numerous risks and uncertainties. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, our actual results and performance could differ materially from those set forth in the forward-looking statements. Factors which could have a material adverse effect on our operations and future prospects include, but are not limited to:

• the fact that we have had a net loss for each quarterly and annual period since inception;

• changes in economic conditions generally and the real estate and debt markets specifically;

• our ability to successfully dispose of real estate on terms that are favorable to us;

• risks inherent in the real estate business, including tenant defaults, tenant vacancies, potential liability relating to environmental matters and liquidity of real estate investments;

• our ability to secure resident leases for our multifamily properties at favorable rental rates;

• our ability to execute on our value-enhancement strategy;

• the impact of competition on rental rates at our apartment homes;

• the fact we pay fees and expenses to our advisor and its affiliates that were not negotiated on an arm’s length basis and the payment of these fees and expenses increases the risk that our stockholders will not earn a profit on their investment in us;

• our ability to retain our executive officers and other key personnel of our advisor, our property manager and our affiliates;

• legislative or regulatory changes (including changes to the laws governing the taxation of real estate investment trusts, or REITs);

• our ability to generate sufficient cash flows to pay distributions to our stockholders;

• the availability of capital;

• changes in interest rates; and

• changes to generally accepted accounting principles, or GAAP.

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PART I — FINANCIAL INFORMATION (continued)

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Any of the assumptions underlying the forward-looking statements included herein could be inaccurate, and undue reliance should not be placed on any forward-looking statements included herein. All forward-looking statements are made as of the date this quarterly report is filed with the Securities and Exchange Commission, or SEC, and the risk that actual results will differ materially from the expectations expressed herein will increase with the passage of time. Except as otherwise required by the federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements made herein, whether as a result of new information, future events, changed circumstances or any other reason. In light of the significant uncertainties inherent in the forward-looking statements included in this quarterly report, the inclusion of such forward-looking statements should not be regarded as a representation by us or any other person that the objectives and plans set forth in this quarterly report will be achieved.

All forward-looking statements included herein should be read in light of the factors identified in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2016, filed with the SEC on March 16, 2017.

Overview

We were formed on May 4, 2009, as a Maryland corporation that has elected to qualify as a real estate investment trust, or REIT. As described in more detail below, we own and manage a diverse portfolio of real estate investments, primarily in the multifamily sector, located throughout the United States.

On July 19, 2010, we commenced our initial public offering of up to a maximum of 150,000,000 shares of common stock and up to 15,789,474 shares of common stock pursuant to our distribution reinvestment plan. Upon termination of our public offering on December 20, 2013, we had sold 73,608,337 shares of common stock for gross proceeds of $745,389,748, including 1,588,289 shares of common stock issued pursuant to our distribution reinvestment plan for gross offering proceeds of $15,397,232. Following the termination of our initial public offering, we continued to offer shares of our common stock pursuant to our distribution reinvestment plan until our board of directors determined to suspend our distribution reinvestment plan effective with distributions earned beginning on December 1, 2014. Our board of directors may, in its sole discretion, reinstate or change the price at which we offer shares of common stock to our stockholders pursuant to the distribution reinvestment plan. On March 10, 2015, the Company’s board of directors determined an estimated value per share of the Company’s common stock of $10.35 as of December 31, 2014. On February 25, 2016, the Company’s board of directors determined an estimated value per share of the Company’s common stock of $11.44 as of December 31, 2015. On February 15, 2017, the Company’s board of directors determined an estimated value per share of the Company’s common stock of $11.65 as of December 31, 2016.

As of March 31, 2017, we owned 65 multifamily properties located within the greater midwest and southern geographic regions of the United States. Our property portfolio consists of an aggregate of 16,709 apartment homes and 25,973 square feet of rentable commercial space. The total purchase price of our real estate portfolio, including development and construction costs for apartment homes we constructed, was $1,644,189,381, exclusive of closing costs. At March 31, 2017, our portfolio was approximately 95.8% leased.

Steadfast Income Advisor, LLC is our advisor. Subject to certain restrictions and limitations, our advisor manages our day-to-day operations and our portfolio of properties. Our advisor sources and presents investment opportunities to our board of directors. Our advisor also provides investment management, marketing, investor relations and other administrative services on our behalf.

Substantially all of our business is conducted through our operating partnership. We are the sole general partner of our operating partnership. The initial limited partner of our operating partnership is our advisor. The limited partnership agreement of our operating partnership provides that our operating partnership will be operated in a manner that will enable us to (1) satisfy the requirements for being classified as a REIT for tax purposes, (2) avoid any federal income or excise tax liability and (3) ensure that our operating partnership will not be classified as a “publicly traded partnership” for purposes of Section 7704 of the Internal Revenue Code of 1986, as amended, or the Internal Revenue Code, which classification could result in our operating partnership being taxed as a corporation, rather than as a partnership. In addition to the administrative and operating costs and expenses incurred by our operating partnership in acquiring and operating real properties, our operating

33

PART I — FINANCIAL INFORMATION (continued)

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

partnership will pay all of our administrative costs and expenses, and such expenses will be treated as expenses of our operating partnership.

We have elected to be taxed as a REIT for federal income tax purposes beginning with the taxable year ending December 31, 2010. As a REIT, we generally will not be subject to federal income tax on income that we distribute to our 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 rates and will not be permitted to qualify for treatment as a REIT for federal income tax purposes for four years following the year in which qualification is denied. Failing to qualify as a REIT could materially and adversely affect our net income.

Market Outlook

The economy in the United States has improved since the last recession; however, there is no assurance that economic conditions will continue to improve or will not worsen in the future. We believe economic and demographic trends will benefit our existing portfolio and that we may have unique future investment opportunities, particularly in the multifamily sector. Home ownership rates are the lowest they have been since 1967. Demographic and economic factors favor the flexibility of rental housing and discourage the potential financial burden associated with home ownership. Additionally, Millennials and Baby Boomers, the two largest demographic groups comprising roughly half of the total population in the United States, are increasingly choosing rental housing over home ownership. Our plan is to provide rental housing for these generational groups as they age. Millennials are getting married and having children later and are choosing to live in apartment communities until their mid-30s. Today, 30% of Millennials are still living with their parents or are still in school. When they get a job, Millennials will likely rent moderate income apartments based upon an average income of $35,000 - $55,000. We believe these factors will continue to contribute to the demand for multifamily housing.

34

PART I — FINANCIAL INFORMATION (continued)

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Our Real Estate Portfolio

As of March 31, 2017, we owned the 65 multifamily properties listed below:

					Contract Purchase Price(1)		Mortgage Debt Outstanding at March 31, 2017		Average Occupancy as of				Average Monthly Rent(2) as of
	Property Name	Location	Purchase Date	Number of Units					Mar 31, 2017		Dec 31, 2016		Mar 31, 2017		Dec 31, 2016
1	Park Place Condominiums	Des Moines, IA	12/22/2010	151	$	8,323,400	$	4,658,476	86.1	%	86.8	%	$	919	$	846
2	Clarion Park Apartments	Olathe, KS	6/28/2011	220	11,215,000		8,094,532		91.4	%	89.5	%	771		815
3	Cooper Creek Village Apartments	Louisville, KY	8/24/2011	123	10,420,000		6,191,599		95.1	%	91.9	%	941		947
4	Truman Farm Villas	Grandview, MO	12/22/2011	200	9,100,000		5,436,265		99.0	%	97.5	%	727		724
5	EBT Lofts	Kansas City, MO	12/30/2011	102	8,575,000		5,140,493		96.1	%	93.1	%	1,063		1,035
6	Windsor on the River Apartments	Cedar Rapids, IA	1/26/2012	424	33,000,000		22,549,255		89.6	%	89.9	%	714		722
7	Renaissance at St. Andrews	Louisville, KY	2/17/2012	216	12,500,000		8,467,941		94.4	%	90.7	%	707		698
8	Spring Creek Apartments	Edmond, OK	3/9/2012	252	19,350,000		12,765,315		89.7	%	93.7	%	815		869
9	Montclair Parc Apartment Homes	Oklahoma City, OK	4/26/2012	360	35,750,000		22,640,983		93.1	%	91.9	%	867		866
10	Sonoma Grande Apartments	Tulsa, OK	5/24/2012	336	32,200,000		21,258,754		94.0	%	94.0	%	902		922
11	Estancia Apartments	Tulsa, OK	6/29/2012	294	27,900,000		20,658,050		93.5	%	92.5	%	940		940
12	Montelena Apartments	Round Rock, TX	7/13/2012	232	18,350,000		11,528,524		96.1	%	93.1	%	1,140		1,097
13	Valley Farms Apartment Homes	Louisville, KY	8/30/2012	160	15,100,000		9,539,722		93.8	%	94.4	%	874		895
14	Hilliard Park Apartments	Columbus, OH	9/11/2012	201	19,800,000		12,867,995		96.5	%	96.5	%	1,073		1,047
15	Sycamore Terrace Apartments	Terre Haute, IN	9/20/2012 & 3/5/2014	250	23,174,157		17,801,548		96.0	%	93.6	%	1,101		1,134
16	Hilliard Summit Apartments	Columbus, OH	9/28/2012	208	24,100,000		15,625,694		92.3	%	93.3	%	1,189		1,205
17	Springmarc Apartments	San Marcos, TX	10/19/2012	240	21,850,000		14,408,618		91.7	%	93.3	%	976		966
18	Renaissance at St. Andrews Condominiums	Louisville, KY	10/31/2012	30	1,423,000		—		96.7	%	93.3	%	745		779
19	Ashley Oaks Apartment Homes	San Antonio, TX	11/29/2012	462	30,790,000		24,614,467		96.3	%	97.0	%	824		818
20	Arrowhead Apartment Homes	Palatine, IL	11/30/2012	200	16,750,000		11,716,558		91.5	%	89.5	%	1,047		1,050
21	The Moorings Apartments	Roselle, IL	11/30/2012	216	20,250,000		14,163,224		94.9	%	93.5	%	1,136		1,129

35

PART I — FINANCIAL INFORMATION (continued)

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

					Contract Purchase Price(1)		Mortgage Debt Outstanding at March 31, 2017		Average Occupancy as of				Average Monthly Rent(2) as of
	Property Name	Location	Purchase Date	Number of Units					Mar 31, 2017		Dec 31, 2016		Mar 31, 2017		Dec 31, 2016
22	Forty 57 Apartments	Lexington, KY	12/20/2012	436	$	52,500,000	$	36,849,793	95.0	%	94.7	%	$	907	$	919
23	Keystone Farms Apartments	Nashville, TN	12/28/2012	90	8,400,000		5,809,510		98.9	%	95.6	%	1,224		1,254
24	Riverford Crossing Apartments	Frankfort, KY	12/28/2012	300	30,000,000		20,946,581		95.0	%	93.7	%	886		872
25	Valley Farms North	Louisville, KY	12/28/2012	128	14,607,032		9,620,027		93.0	%	93.0	%	1,028		989
26	Montecito Apartments	Austin, TX	12/31/2012	268	19,000,000		13,327,302		93.7	%	91.4	%	981		940
27	Hilliard Grand Apartments	Dublin, OH	12/31/2012	314	40,500,000		29,025,504		92.4	%	93.0	%	1,207		1,235
28	The Hills at Fair Oaks	Fair Oaks Ranch, TX	1/31/2013	288	34,560,000		23,767,558		94.8	%	94.8	%	1,020		1,003
29	Library Lofts East	Kansas City, MO	2/28/2013	118	12,750,000		8,473,972		92.4	%	94.1	%	1,003		1,048
30	Trails at Buda Ranch	Buda, TX	3/28/2013	264	23,000,000		20,806,628		95.5	%	97.0	%	1,066		1,058
31	Deep Deuce at Bricktown	Oklahoma City, OK	3/28/2013	294	38,220,000		24,827,791		86.7	%	92.2	%	1,205		1,287
32	Deer Valley Apartments	Lake Bluff, IL	4/30/2013	224	28,600,000		22,807,686		92.4	%	94.6	%	1,322		1,290
33	Grayson Ridge Apartment Homes	North Richland Hills, TX	5/31/2013	240	14,300,000		13,880,483		96.3	%	96.3	%	899		872
34	Rosemont at Olmos Park	San Antonio, TX	5/31/2013	144	22,050,000		14,048,381		95.1	%	97.2	%	1,255		1,265
35	Retreat at Quail North	Oklahoma City, OK	6/12/2013	240	25,250,000		16,635,758		95.0	%	92.9	%	954		949
36	Lodge at Trails Edge	Indianapolis, IN	6/18/2013	268	18,400,000		11,989,258		95.5	%	96.3	%	708		727
37	Arbors of Carrollton	Carrollton, TX	7/3/2013	131	8,800,000		5,938,351		97.7	%	96.9	%	980		957
38	Waterford on the Meadow	Plano, TX	7/3/2013	350	23,100,000		15,766,323		96.6	%	93.7	%	997		989
39	The Belmont	Grand Prairie, TX	7/26/2013	260	12,100,000		8,763,716		96.2	%	94.6	%	917		887
40	Meritage at Steiner Ranch	Austin, TX	8/6/2013	502	80,000,000		58,162,195		91.2	%	91.2	%	1,381		1,414
41	Tapestry Park Apartments	Birmingham, AL	8/13/2013 & 12/1/2014	354	50,285,000		43,610,227		94.9	%	94.6	%	1,269		1,278
42	Dawntree Apartments	Carrollton, TX	8/15/2013	400	24,000,000		15,052,076		96.8	%	95.3	%	956		928
43	Stuart Hall Lofts	Kansas City, MO	8/27/2013	115	16,850,000		15,978,596		93.0	%	91.3	%	1,265		1,287
44	BriceGrove Park Apartments	Canal Winchester, OH	8/29/2013	240	20,100,000		17,079,953		92.5	%	95.0	%	831		858
45	Retreat at Hamburg Place	Lexington, KY	9/5/2013	150	16,300,000		12,036,798		93.3	%	96.0	%	1,008		1,010

36

PART I — FINANCIAL INFORMATION (continued)

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

					Contract Purchase Price(1)		Mortgage Debt Outstanding at March 31, 2017		Average Occupancy as of				Average Monthly Rent(2) as of
	Property Name	Location	Purchase Date	Number of Units					Mar 31, 2017		Dec 31, 2016		Mar 31, 2017		Dec 31, 2016
46	Cantare at Indian Lake Village	Hendersonville, TN	9/24/2013	206	$	29,000,000	$	28,100,853	94.2	%	94.7	%	$	1,148	$	1,116
47	The Landing at Mansfield	Mansfield, TX	9/27/2013	336	30,900,000		27,163,036		95.2	%	95.8	%	1,012		1,027
48	Heights at 2121	Houston, TX	9/30/2013	504	37,000,000		38,226,558		91.5	%	91.5	%	893		907
49	Villas at Huffmeister	Houston, TX	10/10/2013	294	37,600,000		27,148,109		92.5	%	91.2	%	1,195		1,168
50	Villas at Kingwood	Kingwood, TX	10/10/2013	330	40,150,000		35,283,912		94.5	%	91.5	%	1,255		1,221
51	Waterford Place at Riata Ranch	Cypress, TX	10/10/2013	228	23,400,000		17,257,611		91.7	%	91.2	%	1,038		1,077
52	Carrington Place	Houston, TX	11/7/2013	324	32,900,000		27,276,509		92.9	%	92.3	%	1,069		1,035
53	Carrington at Champion Forest	Houston, TX	11/7/2013	284	33,000,000		24,876,286		93.3	%	93.7	%	1,069		1,066
54	Carrington Park at Huffmeister	Cypress, TX	11/7/2013	232	25,150,000		20,217,241		93.5	%	95.3	%	1,157		1,147
55	Willow Crossing Apartments	Elk Grove, IL	11/20/2013	579	58,000,000		57,624,826		91.7	%	93.1	%	1,107		1,111
56	Echo at Katy Ranch	Katy, TX	12/19/2013	260	35,100,000		—		85.8	%	93.1	%	1,347		1,373
57	Heritage Grand at Sienna Plantation	Missouri City, TX	12/20/2013	240	27,000,000		17,191,441		94.6	%	94.6	%	1,165		1,144
58	Audubon Park Apartments	Nashville, TN	12/27/2013	256	16,750,000		16,353,703		91.4	%	90.6	%	951		903
59	Mallard Crossing Apartments	Loveland, OH	12/27/2013	350	39,800,000		33,500,268		93.4	%	94.3	%	1,039		1,066
60	Renaissance at Carol Stream	Carol Stream, IL	12/31/2013	293	29,150,000		23,032,547		94.9	%	92.2	%	1,029		1,006
61	Reserve at Creekside	Chattanooga, TN	3/28/2014	192	18,875,000		14,197,061		95.3	%	91.7	%	940		927
62	Mapleshade Park	Dallas, TX	3/31/2014	148	23,325,000		19,243,260		95.3	%	97.3	%	1,612		1,629
63	Richland Falls	Murfreesboro, TN	5/16/2014	276	30,916,792		20,214,914		94.2	%	94.6	%	1,021		1,028
64	Oak Crossing	Fort Wayne, IN	6/3/2014	222	24,230,000		17,663,823		98.2	%	94.1	%	978		992
65	Park Shore Apartments	St. Charles, IL	9/12/2014	160	18,350,000		15,641,240		91.9	%	95.6	%	1,223		1,189
				16,709	$	1,644,189,381	$	1,215,545,678	93.6	%	93.5	%	$	1,025	$	1,026

________________

(1) The contract purchase price is comprised of the purchase price upon acquisition and the development and construction costs of apartment homes we have constructed, as applicable.

(2) Average monthly rent is based upon the effective rental income after considering the effect of vacancies, concessions and write-offs.

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PART I — FINANCIAL INFORMATION (continued)

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Critical Accounting Policies

The preparation of our financial statements requires significant management judgments, assumptions and estimates about matters that are inherently uncertain. These judgments affect the reported amounts of assets and liabilities and our disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. With different estimates or assumptions, materially different amounts could be reported in our financial statements. Additionally, other companies may utilize different estimates that may impact the comparability of our results of operations to those of companies in similar businesses. A discussion of the accounting policies that management considers critical in that they involve significant management judgments, assumptions and estimates is included in our Annual Report on Form 10-K for the year ended December 31, 2016. There have been no significant changes to our accounting policies during 2017. See also Note 2 to our condensed consolidated unaudited financial statements in this Quarterly Report on Form 10-Q for a discussion of our significant accounting policies.

Income Taxes

We elected to be taxed as a REIT under the Internal Revenue Code and have operated as such beginning with the taxable year ended December 31, 2010. To continue to qualify as a REIT, we must continue to meet certain organizational and operational requirements, including a requirement to distribute at least 90% of our annual REIT taxable income to stockholders (which is computed without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). As a REIT, we generally will not be subject to federal income tax to the extent we distribute qualifying dividends to our stockholders. If we fail to qualify as a REIT in any taxable year, we would be subject to federal income tax on our taxable income at regular corporate income tax rates and generally would 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 was lost, unless the Internal Revenue Service grants us relief under certain statutory provisions. Such an event could materially adversely affect our net income and net cash available for distribution to stockholders. However, we believe we are organized and operate in such a manner as to qualify for treatment as a REIT.

We follow the income tax guidance under GAAP to recognize, measure, present and disclose in our consolidated financial statements uncertain tax positions that we have taken or expect to take on a tax return. As of March 31, 2017 and December 31, 2016, we did not have any liabilities for uncertain tax positions that we believe should be recognized in our consolidated financial statements. Due to uncertainty regarding the realization of certain deferred tax assets, we have established valuation allowances, primarily in connection with the net operating loss carryforward related to the REIT. We have not been assessed material interest or penalties by any major tax jurisdictions. Our evaluation was performed for the tax years ended December 31, 2016, 2015 and 2014.

Distributions

Our board of directors has declared daily distributions that are paid on a monthly basis. We expect to continue paying monthly distributions unless our results of operations, our general financial condition, general economic conditions or other factors prohibit us from doing so. We may declare distributions in excess of our funds from operations. As a result, our distribution rate and payment frequency may vary from time to time. However, to qualify as a REIT for tax purposes, we must make distributions equal to at least 90% of our “REIT taxable income” each year.

Distributions declared (1) accrue daily to our stockholders of record as of the close of business on each day, (2) are payable in cumulative amounts on or before the third day of each calendar month with respect to the prior month and (3) are calculated at a rate of $0.001964 per share per day during the three months ended March 31, 2017 and 2016.

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PART I — FINANCIAL INFORMATION (continued)

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

The distributions paid during the fiscal quarter ended March 31, 2017 were as follows:

			Distributions Declared Per Share(1)(2)				Sources of Distributions Paid				Net Cash Provided By Operating Activities
Period	Distributions Declared(1)				Distributions Paid(3)		Cash Flow From Operations		Cash and Cash Equivalents
First Quarter 2017	$	13,447,122	$	0.177	$	13,444,612	$	10,904,602	$	2,540,010	$	10,904,602

________________

(1) Distributions are based on daily record dates and calculated at a rate of $0.001964 per share per day during the three months ended March 31, 2017.

(2) Assumes each share was issued and outstanding each day during the period presented.

(3) Distributions are paid on a monthly basis. Distributions for all record dates of a given month are paid approximately three days following month end. All distributions were paid in cash.

For the three months ended March 31, 2017, we paid aggregate distributions of $13,444,612. All such distributions were paid in cash. For the three months ended March 31, 2017, we had a net loss of $5,644,875. For the three months ended March 31, 2017, we had funds from operations, or FFO, of $12,308,848 and net cash provided by operating activities was $10,904,602. For the three months ended March 31, 2017, we funded $10,904,602 of distributions paid with net cash provided by operating activities and $2,540,010 with existing cash and cash equivalents that were available from the 2016 refinancing transactions described in Note 5 to our condensed consolidated unaudited financial statements included this Quarterly Report on Form 10-Q, or the refinancing transactions. For information on how we calculate FFO and the reconciliation of FFO to net loss, see “—Funds from Operations and Modified Funds from Operations.”

Over the long-term, we expect that our distributions will be paid from cash flow from operations (except with respect to distributions related to sales of our real estate and real estate-related investments). However, our operating performance cannot be accurately predicted and may deteriorate in the future due to numerous factors, including those discussed under “Forward-Looking Statements,” and “Results of Operations” herein. In the event our cash flow from operations decreases in the future, the level of our distributions may also decrease.

Inflation

Substantially all of our multifamily property leases will be for a term of one year or less. In an inflationary environment, this may allow us to realize increased rents upon renewal of existing leases or the beginning of new leases. Short-term leases generally will minimize our risk from the adverse effects of inflation, although these leases generally permit tenants to leave at the end of the lease term and therefore will expose us to the effects of a decline in market rents. In a deflationary rent environment, we may be exposed to declining rents more quickly under these shorter term leases.

With respect to our commercial properties, we include in our leases future provisions designed to protect us from the impact of inflation. These provisions include reimbursement billings for operating expense pass-through charges, real estate tax and insurance reimbursements, or in some cases annual reimbursement of operating expenses above a certain allowance. We believe that shorter term lease contracts on commercial properties lessen the impact of inflation due to the ability to adjust rental rates to market levels as leases expire.

As of March 31, 2017, we had not entered into any leases as a lessee.

REIT Compliance

To qualify as a REIT for tax purposes, we are required to distribute at least 90% of our REIT taxable income (which is computed without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP) to our stockholders. We must also meet certain asset and income tests, as well as other requirements. We will monitor the business and transactions that may potentially impact our REIT status. If we fail to qualify as

39

PART I — FINANCIAL INFORMATION (continued)

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

a REIT in any taxable year, we will be subject to federal income tax (including any applicable alternative minimum tax) on our taxable income at regular corporate rates.

Liquidity and Capital Resources

We have used, and intend to use in the future, secured and unsecured borrowings. At the conclusion of our initial public offering, our overall borrowings were approximately 65% of the cost of our investments (before deducting depreciation and amortization) plus the value of our other investments. Going forward, we expect that our borrowings will be approximately 65% of the value of our properties, as determined by an independent third party appraiser or qualified independent valuation expert. Under our Third Articles of Amendment and Restatement, or our charter, we have a limitation on borrowing in excess of 300% of the value of our net assets, which generally approximates to 75% of the aggregate cost of our assets, though we may exceed this limit under certain circumstances. As of March 31, 2017, our borrowings were not in excess of 300% of the value of our net assets.

We expect to use our capital resources to make certain payments to our advisor in connection with the disposal of investments, the management of our assets and costs incurred by our advisor in providing services to us.

Our principal demand for funds will be to fund value-enhancement and other capital improvement projects at our properties, to pay operating expenses and interest on our outstanding indebtedness and to make distributions to our stockholders. We intend to generally fund our cash needs for items, other than asset acquisitions, from operations. Otherwise, we expect that our principal sources of working capital will include:

• current cash balances;

• various forms of secured and unsecured financing; and

• equity capital from joint venture partners.

Over the short term, we believe that our sources of capital, specifically our cash balances, cash flow from operations, our ability to raise equity capital from joint venture partners and our ability to obtain various forms of secured and unsecured financing will be adequate to meet our liquidity requirements and capital commitments.

Over the longer term, in addition to the sources of capital noted above which we will rely on to meet our short term liquidity requirements, we may also utilize proceeds from the sale of our properties. We may also conduct additional public or private offerings. We expect these resources to be adequate to fund our operating activities, debt service and distributions, which we presently anticipate will grow over time, and will be sufficient to fund our ongoing operating activities as well as providing capital for investment in future development and other joint ventures along with potential forward purchase commitments.

On July 29, 2016, we entered into a credit agreement and a multifamily note with PNC Bank, National Association that provide for a credit facility in an amount not to exceed $350,000,000 to refinance certain of our existing mortgage loans. The credit facility has a maturity date of August 1, 2021, subject to extension. Advances made under the credit facility will be secured by the properties set out in Note 5 of the accompanying condensed consolidated unaudited financial statements. We continue to evaluate possible sources of capital, including, without limitation, entering into additional credit facilities. There can be no assurance that we will be able to obtain any such financings on favorable terms, if at all.

Cash Flows Provided by Operating Activities

As of March 31, 2017, we owned 65 multifamily properties. During the three months ended March 31, 2017, net cash provided by operating activities was $10,904,602 compared to $11,942,765 for the three months ended March 31, 2016. The decrease in net cash provided by operating activities is primarily due to changes in net loss, depreciation and amortization expense, accounts payable and accrued liabilities, restricted cash and rent and other receivables compared to the first quarter of 2016.

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PART I — FINANCIAL INFORMATION (continued)

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Cash Flows Used in Investing Activities

During the three months ended March 31, 2017, net cash used in investing activities was $4,151,057 compared to $4,933,892 during the three months ended March 31, 2016. The decrease in net cash used in investing activities was primarily due to fewer value-enhancement and other capital improvement projects being paid during the three months ended March 31, 2017 compared to the three months ended March 31, 2016. Net cash used in investing activities during the three months ended March 31, 2017 consisted of the following:

• $169,500 from short-term investments;

• $4,519,629 of cash used for improvements to real estate investments;

• $191,177 of cash provided by restricted cash accounts related to replacement reserves; and

• $7,895 of cash provided by insurance claims.

Cash Flows Used in Financing Activities

During the three months ended March 31, 2017, net cash used in financing activities was $17,777,271 compared to net cash used in financing activities of $2,605,207 during the three months ended March 31, 2016. The increase in cash flows used in financing activities is due primarily to the decrease in borrowings from the credit facility. Net cash used in financing activities during the three months ended March 31, 2017 consisted of the following:

• $2,332,659 of principal payments on mortgage notes payable, net of proceeds of $303,751;

• $2,000,000 of cash paid for the redemption of common stock; and

• $13,444,612 of cash distributions.

Contractual Commitments and Contingencies

We have used, and intend to use in the future, secured and unsecured debt. We believe that the careful use of borrowings will help us achieve our diversification goals and potentially enhance the returns on our investments. At the conclusion of our public offering, our borrowings were approximately 65% of the cost of our real properties (before deducting depreciation and amortization) plus the value of our other investments. Going forward, we expect that our borrowings will be approximately 65% of the value of our properties, as determined by an independent third party appraiser or qualified independent valuation expert. Under our charter, we are prohibited from borrowing in excess of 300% of our net assets, which generally approximates to 75% of the aggregate cost of our assets. We may borrow in excess of this amount if such excess is approved by a majority of our independent directors and disclosed to stockholders in our next quarterly report, along with a justification for such excess. In such event, we will monitor our debt levels and take action to reduce any such excess as practicable. Our aggregate borrowings are reviewed by our board of directors at least quarterly. As of March 31, 2017, our aggregate borrowings were not in excess of 300% of the value of our net assets.

In addition to using our capital resources for investing purposes and meeting our debt obligations, we expect to use our capital resources to make certain payments to our advisor or its affiliates. We expect to make payments to our advisor or its affiliates in connection with the selection and origination or purchase of real estate and real estate-related investments, the management of our assets, the management of the development or improvement of our assets and costs incurred by our advisor in providing services to us.

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PART I — FINANCIAL INFORMATION (continued)

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

As of March 31, 2017, we had indebtedness totaling an aggregate principal amount of $1,215,545,678, including the net premiums on certain notes payables of $1,899,980 and the net deferred financing costs of $8,376,213. The following is a summary of our contractual obligations as of March 31, 2017:

			Payments due by period
Contractual Obligations	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Interest payments on outstanding debt obligations(1)	$	242,322,877	$	32,010,498	$	75,407,981	$	59,805,536	$	75,098,862
Principal payments on outstanding debt obligations(2)	1,222,021,911		47,836,071		177,773,857		365,768,163		630,643,820
Total	$	1,464,344,788	$	79,846,569	$	253,181,838	$	425,573,699	$	705,742,682

________________

(1) Projected interest payments on outstanding debt obligations are based on the outstanding principal amounts and interest rates in effect at March 31, 2017. We incurred interest expense of $10,848,036 during the three months ended March 31, 2017, including amortization of deferred financing costs of $470,696, amortization of loan premiums of $308,639 and net unrealized losses from the change in fair value of interest rate cap agreements of $319,953.

(2) Projected principal payments on outstanding debt obligations are based on the terms of the notes payable agreements. Amounts exclude the amortization of the debt premiums in addition to net deferred financing costs associated with certain notes payable.

We have significant debt maturing within one year from the date the consolidated financial statements are available to be issued. Although we do not currently have the liquid funds necessary to repay the debt at maturity, we believe it is probable that we will be able to refinance all or a portion of the debt prior to maturity.

Results of Operations

Overview

The discussion that follows is based on our consolidated results of operations for the three months ended March 31, 2017 and 2016. The ability to compare one period to another is affected by our value-enhancement strategy. Although the number of multifamily properties owned as of March 31, 2017 remained unchanged at 65 compared to March 31, 2016, our results of operations were impacted by the construction of an additional 86 apartment homes at one existing multifamily property during 2016 and our value-enhancement activity completed through March 31, 2017, as further discussed below.

Our results of operations for the three months ended March 31, 2017 and 2016 are not indicative of those expected in future periods. For the three months ended March 31, 2017, we continue the process of value-enhancement projects, which may have an impact on our future results of operations. In general, we expect that our income and expenses related to our portfolio will increase in future periods as a result of organic rent increases and, to a lesser extent, anticipated value-enhancement projects.

To provide additional insight into our operating results, we are also providing a detailed analysis of property operations and net operating income, or NOI. For more information on NOI and a reconciliation of NOI (a non-GAAP measure) to net loss, see “—Net Operating Income.”

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PART I — FINANCIAL INFORMATION (continued)

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Consolidated Results of Operations for the Three Months Ended March 31, 2017 and 2016

The following table summarizes the consolidated results of operations for the three months ended March 31, 2017 and 2016:

	For the Three Months Ended March 31,
	2017			2016			Change $			Change %
Total revenues	$	54,280,265		$	52,906,908		$	1,373,357		3	%
Operating, maintenance and management	(14,076,201		)	(13,709,810		)	(366,391		)	3	%
Real estate taxes and insurance	(9,812,747		)	(8,911,021		)	(901,726		)	10	%
Fees to affiliates	(5,622,023		)	(5,522,423		)	(99,600		)	2	%
Depreciation and amortization	(17,953,723		)	(16,947,268		)	(1,006,455		)	6	%
Interest expense	(10,848,036		)	(10,046,840		)	(801,196		)	8	%
General and administrative expenses	(1,612,410		)	(1,387,688		)	(224,722		)	16	%
Net loss	$	(5,644,875	)	$	(3,618,142	)	$	(2,026,733	)	56	%
NOI(1)	$	28,276,306		$	28,343,638		$	(67,332	)	—	%
FFO(2)	$	12,308,848		$	13,329,126		$	(1,020,278	)	(8	)%
MFFO(2)	$	12,628,801		$	13,675,445		$	(1,046,644	)	(8	)%

________________

(1) NOI is a non-GAAP financial measure used by investors and our management to evaluate and compare the performance of our properties and to determine trends in earnings. However, the usefulness of NOI is limited because it excludes general and administrative costs, interest expense, interest income and other expense, acquisition costs, certain fees to affiliates, depreciation and amortization expense and gains or losses from the sale of our properties and other gains and losses as stipulated by GAAP, the level of capital expenditures and leasing costs, all of which are significant economic costs. For additional information on how we calculate NOI and a reconciliation of NOI to net loss, see “—Net Operating Income.”

(2) GAAP basis accounting for real estate assets utilizes historical cost accounting and assumes real estate values diminish over time. In an effort to overcome the difference between real estate values and historical cost accounting for real estate assets, the Board of Governors of NAREIT established the measurement tool of FFO. Since its introduction, FFO has become a widely used non-GAAP financial measure among REITs. Additionally, we use modified funds from operations, or MFFO, as defined by the Investment Program Association as a supplemental measure to evaluate our operating performance. MFFO is based on FFO but includes certain adjustments we believe are necessary due to changes in accounting and reporting under GAAP since the establishment of FFO. Neither FFO nor MFFO should be considered as alternatives to net loss or other measurements under GAAP as indicators of our operating performance, nor should they be considered as alternatives to cash flow from operating activities or other measurements under GAAP as indicators of liquidity. For additional information on how we calculate FFO and MFFO and a reconciliation of FFO and MFFO to net loss, see “—Funds From Operations and Modified Funds From Operations.”

Net loss

For the three months ended March 31, 2017, we had a net loss of $5,644,875 compared to a net loss of $3,618,142 for the three months ended March 31, 2016. The increase in net loss of $2,026,733 over the prior year period was primarily due to the increase in operating, maintenance and management expenses of $366,391, the increase in real estate taxes and insurance of $901,726, the increase in fees to affiliates of $99,600, the increase in depreciation and amortization expense of $1,006,455, the

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PART I — FINANCIAL INFORMATION (continued)

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

increase in interest expense of $801,196 and the increase in general and administrative expenses of $224,722, partially offset by the increase in total revenues of $1,373,357. Our results of operations were primarily negatively impacted by depreciation and amortization, real estate taxes and interest expense, as further discussed below.

Total revenues

Rental income and tenant reimbursements for the three months ended March 31, 2017 were $54,280,265 compared to $52,906,908 for the three months ended March 31, 2016. The increase of $1,373,357 was primarily due to the average monthly rent increasing from $1,005 at March 31, 2016 to $1,025 at March 31, 2017, as a result of ordinary monthly rent increases and the completion of our value-enhancement projects. Additionally, our total units increased by 87 from 16,622 at March 31, 2016 to 16,709 at March 31, 2017. We expect rental income and tenant reimbursements to increase in future periods as a result of ordinary monthly rent increases and to a lesser extent our value-enhancement strategy.

Operating, maintenance and management

Operating, maintenance and management expenses for the three months ended March 31, 2017 were $14,076,201 compared to $13,709,810 for the three months ended March 31, 2016. The increase of $366,391 was primarily due to increased utilities costs and salaries and wages of onsite personnel. We expect that these amounts will decrease as a percentage of total revenues as we implement operational efficiencies at our multifamily properties.

Real estate taxes and insurance

Real estate taxes and insurance expenses for the three months ended March 31, 2017 were $9,812,747 compared to $8,911,021 for the three months ended March 31, 2016. Approximately $600,000 of the increase related to prior year settlements reducing the real estate tax expense during the three months ended March 31, 2016. The remaining approximately $300,000 increase was due to increased assessed values of our property portfolio. These amounts may increase in future periods as a result of ordinary municipal property tax increases and/or increases in the assessed value of our property portfolio.

Fees to affiliates

Fees to affiliates for the three months ended March 31, 2017 were $5,622,023 compared to $5,522,423 for the three months ended March 31, 2016. The increase of $99,600 primarily was due to increases to the property management and investment management fees payable to our affiliated property manager and advisor for the three months ended March 31, 2017 as a result of the growth of our property portfolio. We expect fees to affiliates to increase in future periods as a result of increased property management fees from anticipated increases in future rental income.

Depreciation and amortization

Depreciation and amortization expenses for the three months ended March 31, 2017 were $17,953,723 compared to $16,947,268 for the three months ended March 31, 2016. The increase of $1,006,455 was primarily due to the increase in depreciable and amortizable assets of $29,845,999 since March 31, 2016. We expect these amounts to increase slightly in future periods as a result of anticipated capital expenditures made to our real estate portfolio.

Interest expense

Interest expense for the three months ended March 31, 2017 was $10,848,036 compared to $10,046,840 for the three months ended March 31, 2016. The increase of $801,196 was primarily due to a net increase of $87,706,733 in our total notes payable balance from March 31, 2016 to March 31, 2017 in addition to increases in LIBOR from March 31, 2016 to March 31, 2017 that impact the interest on our variable rate loans. Our interest expense in future periods will vary based on the impact changes to LIBOR will have on our variable rate debt and our level of borrowings, which will depend on the availability and cost of debt financing, the opportunity to acquire real estate and real estate-related investments meeting our investment objectives and the opportunity to sell real estate properties and real estate-related investments.

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PART I — FINANCIAL INFORMATION (continued)

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

General and administrative expense

General and administrative expenses for the three months ended March 31, 2017 were $1,612,410 compared to $1,387,688 for the three months ended March 31, 2016. These general and administrative costs consisted primarily of legal fees, insurance premiums, audit fees, other professional fees, independent director compensation and certain state taxes. The increase of $224,722 primarily was due to increases in insurance, appraisal and audit costs, partially offset by a reduction in the change in fair value of unvested restricted common stock for the three months March 31, 2017 compared to the three months ended March 31, 2016. We expect general and administrative expenses incurred by our advisor to decrease as a percentage of total revenue.

Property Operations for the Three Months Ended March 31, 2017 Compared to the Three Months Ended March 31, 2016

The following table presents the property operations for the three months ended March 31, 2017 and 2016 for the 65 properties we owned as of March 31, 2017 and 2016:

	For the Three Months Ended March 31,
	2017		2016		Change $			Change %
Operating revenues	$	54,206,121	$	52,890,812	$	1,315,309		2	%
Operating expenses	25,929,815		24,547,174		1,382,641			6	%
Net operating income(1)	$	28,276,306	$	28,343,638	$	(67,332	)	—	%

________________

(1) See “—Net Operating Income” below for a reconciliation of NOI to net income (loss).

Net Operating Income

Net operating income for the three months ended March 31, 2017 was $28,276,306 compared to $28,343,638 for the three months ended March 31, 2016. The 2%increase in operating revenues was offset by the 6%increase in operating expenses over the comparable prior year period.

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PART I — FINANCIAL INFORMATION (continued)

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Revenues

Operating revenues for the three months ended March 31, 2017 were $54,206,121 compared to $52,890,812 for the three months ended March 31, 2016. The 2%increase in operating revenues was primarily due to the average monthly rent increases from $1,005 as of March 31, 2016 to $1,025 as of March 31, 2017.

Operating Expenses

Operating expenses for the three months ended March 31, 2017 were $25,929,815 compared to $24,547,174 for the three months ended March 31, 2016. The 6%increase in operating expenses was primarily due to increased real estate taxes, turnover costs, utilities and wages and salaries during the three months ended March 31, 2017 compared to the three months ended March 31, 2016.

Net Operating Income

NOI is a non-GAAP financial measure of performance. NOI is used by investors and our management to evaluate and compare the performance of our properties and to determine trends in earnings and to compute the fair value of our properties as it is not affected by (1) the cost of funds, (2) acquisition costs, (3) non-operating fees to affiliates, (4) the impact of depreciation and amortization expenses as well as gains or losses from the sale of operating real estate assets that are included in net income computed in accordance with GAAP or (5) general and administrative expenses and other gains and losses that are specific to us. The cost of funds is eliminated from net income (loss) because it is specific to our particular financing capabilities and constraints. The cost of funds is also eliminated because it is dependent on historical interest rates and other costs of capital as well as past decisions made by us regarding the appropriate mix of capital which may have changed or may change in the future. Acquisition costs and non-operating fees to affiliates are eliminated because they do not reflect continuing operating costs of the property owner.

Depreciation and amortization expenses as well as gains or losses from the sale of operating real estate assets are eliminated because they may not accurately represent the actual change in value in our multifamily properties that result from use of the properties or changes in market conditions. While certain aspects of real property do decline in value over time in a manner that is reasonably captured by depreciation and amortization, the value of the properties as a whole have historically increased or decreased as a result of changes in overall economic conditions instead of from actual use of the property or the passage of time. Gains and losses from the sale of real property vary from property to property and are affected by market conditions at the time of sale which will usually change from period to period. These gains and losses can create distortions when comparing one period to another or when comparing our operating results to the operating results of other real estate companies that have not made similarly timed purchases or sales. We believe that eliminating these costs from net income is useful because the resulting measure captures the actual revenue generated and actual expenses incurred in operating our properties as well as trends in occupancy rates, rental rates and operating costs.

The usefulness of NOI is limited because it excludes general and administrative costs, interest expense, interest income and other expense, acquisition costs, certain fees to affiliates, depreciation and amortization expense and gains or losses from the sale of properties, and other gains and losses as stipulated by GAAP, the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, all of which are significant economic costs. NOI may fail to capture significant trends in these components of net income which further limits its usefulness.

NOI is a measure of the operating performance of our properties but does not measure our performance as a whole. NOI is therefore not a substitute for net income (loss) as computed in accordance with GAAP. This measure should be analyzed in conjunction with net income (loss) computed in accordance with GAAP and discussions elsewhere in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” regarding the components of net income (loss) that are eliminated in the calculation of NOI. Other companies may use different methods for calculating NOI or similarly entitled measures and, accordingly, our NOI may not be comparable to similarly entitled measures reported by other companies that do not define the measure exactly as we do.

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PART I — FINANCIAL INFORMATION (continued)

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

The following is a reconciliation of our NOI to net loss for the three months ended March 31, 2017 and 2016 computed in accordance with GAAP:

	For the Three Months Ended March 31,
	2017			2016
Net loss	$	(5,644,875	)	$	(3,618,142	)
Fees to affiliates(1)	3,581,155			3,501,124
Depreciation and amortization	17,953,723			16,947,268
Interest expense	10,848,036			10,046,840
General and administrative expenses	1,612,410			1,387,688
Other (gains) and losses(2)	(74,143		)	78,860
Net operating income	$	28,276,306		$	28,343,638

________________

(1) Fees to affiliates for the three months ended March 31, 2017 and 2016 excludes property management fees of $1,606,536 and $1,571,982 and other fees of $434,332 and $449,317, respectively, that are included in NOI.

(2) Other (gains) and losses for the three months ended March 31, 2017 and 2016 include non-recurring insurance proceeds and certain corporate level expenses that are not included in NOI.

Funds from Operations and Modified Funds from Operations

Due to certain unique operating characteristics of real estate companies, as discussed below, NAREIT, an industry trade group, has promulgated the measure of FFO which we believe to be an appropriate supplemental measure to reflect the operating performance of a real estate investment trust, or REIT. The use of FFO is recommended by the REIT industry as a supplemental performance measure. FFO is not equivalent to our net income (loss) as determined under GAAP.

We define FFO, a non-GAAP financial measure, consistent with the standards established by the White Paper on FFO approved by the Board of Governors of NAREIT, as revised in February 2004, or the White Paper. The White Paper defines FFO as net income (loss) computed in accordance with GAAP, excluding gains or losses from sales of property and non-cash impairment charges of real estate related investments, plus real estate related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. In particular, we believe it is appropriate to disregard impairment charges, as this is a fair value adjustment that is largely based on market fluctuations and assessments regarding general market conditions which can change over time. An asset will only be evaluated for impairment if certain impairment indications exist and if the carrying, or book value, exceeds the total estimated undiscounted future cash flows (including net rental and lease revenues, net proceeds on the sale of the property, and any other ancillary cash flows at a property or group level under GAAP) from such asset. Investors should note, however, that determinations of whether impairment charges have been incurred are based partly on anticipated operating performance, because estimated undiscounted future cash flows from a property, including estimated future net rental and lease revenues, net proceeds on the sale of the property, and certain other ancillary cash flows, are taken into account in determining whether an impairment charge has been incurred. While impairment charges are excluded from the calculation of FFO as described above, investors are cautioned that due to the fact that impairments are based on estimated future undiscounted cash flows and the relatively limited term of our operations, it could be difficult to recover any impairment charges. Our FFO calculation complies with NAREIT’s policy described above.

The historical accounting convention used for real estate assets requires straight-line depreciation of buildings and improvements, which implies that the value of real estate assets diminishes predictably over time, especially if such assets are not adequately maintained or repaired and renovated as required by relevant circumstances and/or as requested or required by lessees for operational purposes in order to maintain the value disclosed. We believe that since real estate values historically rise and fall with market conditions, including inflation, interest rates, the business cycle, unemployment and consumer spending,

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PART I — FINANCIAL INFORMATION (continued)

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

presentations of operating results for a REIT using historical accounting for depreciation may be less informative. Historical accounting for real estate involves the use of GAAP. Any other method of accounting for real estate such as the fair value method cannot be construed to be any more accurate or relevant than the comparable methodologies of real estate valuation found in GAAP. Nevertheless, we believe that the use of FFO, which excludes the impact of real estate related depreciation and amortization, provides a more complete understanding of our performance to investors and to management, and when compared year over year, reflects the impact on our operations from trends in occupancy rates, rental rates, operating costs, general and administrative expenses, and interest costs, which may not be immediately apparent from net income. However, FFO, and MFFO as described below, should not be construed to be more relevant or accurate than the current GAAP methodology in calculating net income or in its applicability in evaluating our operating performance. The method utilized to evaluate the value and performance of real estate under GAAP should be construed as a more relevant measure of operational performance and considered more prominently than the non-GAAP FFO and MFFO measures and the adjustments to GAAP in calculating FFO and MFFO.

Changes in the accounting and reporting promulgations under GAAP (for acquisition fees and expenses from a capitalization/depreciation model to an expensed-as-incurred model) that were put into effect in 2009 and other changes to GAAP accounting for real estate subsequent to the establishment of NAREIT’s definition of FFO have prompted an increase in cash-settled expenses, specifically acquisition fees and expenses for all industries as items that are expensed under GAAP, that are typically accounted for as operating expenses. Management believes these fees and expenses do not affect our overall long-term operating performance. Publicly registered, non-listed REITs typically have a significant amount of acquisition activity and are substantially more dynamic during their initial years of investment and operation. While other start-up entities may also experience significant acquisition activity during their initial years, we believe that public, non-listed REITs, like us, are unique in that they have a limited life with targeted exit strategies within a relatively limited time frame after acquisition activity ceases. Our board of directors will determine to pursue a liquidity event when it believes that the then-current market conditions are favorable. Thus, as a limited life REIT, we will not continuously purchase assets and will have a limited life.

Due to the above factors and other unique features of publicly registered, non-listed REITs, the Investment Program Association, or IPA, an industry trade group, has standardized a measure known as MFFO, which the IPA has recommended as a supplemental measure for publicly registered non-listed REITs and which we believe to be another appropriate supplemental measure to reflect the operating performance of a public, non-listed REIT having the characteristics described above. MFFO is not equivalent to our net income or loss as determined under GAAP, and MFFO may not be a useful measure of the impact of long-term operating performance on value if we do not continue to operate with a limited life and targeted exit strategy, as currently intended. We believe that, because MFFO excludes costs that we consider more reflective of investing activities and other non-operating items included in FFO and also excludes acquisition fees and expenses that are not capitalized, as discussed below, and affect our operations only in periods in which properties are acquired, MFFO can provide, on a going forward basis, an indication of the sustainability (that is, the capacity to continue to be maintained) of our operating performance after the period in which we are acquiring our properties and once our portfolio is in place. By providing MFFO, we believe we are presenting useful information that assists investors and analysts to better assess the sustainability of our operating performance after our offering has been completed and our properties have been acquired. We also believe that MFFO is a recognized measure of sustainable operating performance by the non-listed REIT industry. Further, we believe MFFO is useful in comparing the sustainability of our operating performance after our offering and acquisitions are completed with the sustainability of the operating performance of other real estate companies that are not as involved in acquisition activities. Investors are cautioned that MFFO should only be used to assess the sustainability of our operating performance after our offering has been completed and properties have been acquired, as it excludes acquisition costs that have a negative effect on our operating performance during the periods in which properties are acquired.

We define MFFO, a non-GAAP financial measure, consistent with the IPA’s Guideline 2010-01, Supplemental Performance Measure for Publicly Registered, Non-Listed REITs: Modified Funds from Operations, or the Practice Guideline, issued by the IPA in November 2010. The Practice Guideline defines MFFO as FFO further adjusted for the following items, as applicable, included in the determination of GAAP net income: acquisition fees and expenses; amounts relating to deferred rent receivables and amortization of above and below market leases and liabilities (which are adjusted in order to reflect such payments from a GAAP accrual basis to a cash basis of disclosing the rent and lease payments); accretion of discounts and amortization of

48

PART I — FINANCIAL INFORMATION (continued)

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

premiums on debt investments; mark-to-market adjustments included in net income; nonrecurring gains or losses included in net income from the extinguishment or sale of debt, hedges, foreign exchange, derivatives or securities holdings where trading of such holdings is not a fundamental attribute of the business plan, unrealized gains or losses resulting from consolidation from, or deconsolidation to, equity accounting, and after adjustments for consolidated and unconsolidated partnerships and joint ventures, with such adjustments calculated to reflect MFFO on the same basis. The accretion of discounts and amortization of premiums on debt investments, nonrecurring unrealized gains and losses on hedges, foreign exchange, derivatives or securities holdings, unrealized gains and losses resulting from consolidations, as well as other listed cash flow adjustments are adjustments made to net income in calculating the cash flows provided by operating activities and, in some cases, reflect gains or losses which are unrealized and may not ultimately be realized. While we rely on our advisor for managing interest rate, hedge and foreign exchange risk, we do not retain an outside consultant to review all our hedging agreements. Inasmuch as interest rate hedges are not a fundamental part of our operations, we believe it is appropriate to exclude such non-recurring gains and losses in calculating MFFO, as such gains and losses are not reflective of on-going operations.

Our MFFO calculation complies with the IPA’s Practice Guideline described above, except with respect to certain acquisition fees and expenses as discussed below. In calculating MFFO, we exclude acquisition related expenses that are not capitalized, amortization of above and below market leases, fair value adjustments of derivative financial instruments, deferred rent receivables and the adjustments of such items related to noncontrolling interests. Currently, under GAAP, acquisition fees and expenses are characterized as operating expenses in determining operating net income. However, following the recent publication of ASU 2017-01, Business Combinations (Topic 805): Clarifying the definition of business, or ASU 2017-01, acquisition fees and expenses are capitalized and depreciated under certain conditions. We have elected to early adopt ASU 2017-01 and for any future acquisitions this would result in a substantial part of acquisition fees and expenses being capitalized and therefore not excluded from the calculation of MFFO but captured as depreciation in calculating FFO. However, these expenses are paid in cash by us. All paid and accrued acquisition fees and expenses will have negative effects on returns to investors, the potential for future distributions, and cash flows generated by us, unless earnings from operations or net sales proceeds from the disposition of other properties are generated to cover the purchase price of the property, these fees and expenses and other costs related to such property. In the event that operational earnings and cash flow are not available to fund our reimbursement of acquisition fees and expenses incurred by our advisor, such fees and expenses will need to be reimbursed to our advisor from other sources, including debt, net proceeds from the sale of properties, or from ancillary cash flows. The acquisition of properties, and the corresponding acquisition fees and expenses, is the key operational feature of our business plan to generate operational income and cash flow to fund distributions to our stockholders. Further, under GAAP, certain contemplated non-cash fair value and other non-cash adjustments are considered operating non-cash adjustments to net income in determining cash flow from operating activities. In addition, we view fair value adjustments of derivatives and gains and losses from dispositions of assets as non-recurring items or items which are unrealized and may not ultimately be realized, and which are not reflective of on-going operations and are therefore typically adjusted for when assessing operating performance.

Our management uses MFFO and the adjustments used to calculate MFFO in order to evaluate our performance against other public, non-listed REITs which have limited lives with short and defined acquisition periods and targeted exit strategies shortly thereafter. As noted above, MFFO may not be a useful measure of the impact of long-term operating performance on value if we do not continue to operate in this manner. We believe that our use of MFFO and the adjustments used to calculate MFFO allow us to present our performance in a manner that reflects certain characteristics that are unique to public, non-listed REITs, such as their limited life, limited and defined acquisition period and targeted exit strategy, and hence that the use of such measures is useful to investors. By excluding expensed acquisition costs that are not capitalized, the use of MFFO provides information consistent with management’s analysis of the operating performance of the properties. Additionally, fair value adjustments, which are based on the impact of current market fluctuations and underlying assessments of general market conditions, but can also result from operational factors such as rental and occupancy rates, may not be directly related or attributable to our current operating performance. By excluding such changes that may reflect anticipated and unrealized gains or losses, we believe MFFO provides useful supplemental information.

Presentation of this information is intended to provide useful information to investors as they compare the operating performance to that of other public, non-listed REITs, although it should be noted that not all public, non-listed REITs calculate FFO and MFFO the same way, so comparisons with other public, non-listed REITs may not be meaningful. Furthermore, FFO

49

PART I — FINANCIAL INFORMATION (continued)

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

and MFFO are not necessarily indicative of cash flow available to fund cash needs and should not be considered as an alternative to net income (loss) or income (loss) from continuing operations as an indication of our performance, as an alternative to cash flows from operations as an indication of our liquidity, or indicative of funds available to fund our cash needs, including our ability to make distributions to our stockholders. FFO and MFFO should be reviewed in conjunction with GAAP measurements as an indication of our performance. MFFO is useful in assisting management and investors in assessing the sustainability of operating performance in future operating periods, and in particular, after the offering and acquisition stages are complete and net asset value is disclosed. MFFO is not a useful measure in evaluating net asset value because impairments are taken into account in determining net asset value but not in determining MFFO.

Neither the SEC, NAREIT nor any other regulatory body has passed judgment on the acceptability of the adjustments that we use to calculate FFO or MFFO. In the future, the SEC, NAREIT or another regulatory body may decide to standardize the allowable adjustments across the non-listed REIT industry and in response to such standardization we may have to adjust our calculation and characterization of FFO or MFFO accordingly.

Our calculation of FFO and MFFO is presented in the following table for the three months ended March 31, 2017 and 2016:

	For the Three Months Ended March 31,
Reconciliation of net loss to MFFO:	2017			2016
Net loss	$	(5,644,875	)	$	(3,618,142	)
Depreciation of real estate assets	17,915,431			16,908,976
Amortization of lease-related costs	38,292			38,292
FFO	12,308,848			13,329,126
Unrealized loss on derivative instruments	319,953			232,712
Change in value of restricted common stock to Advisor	—			113,607
MFFO	$	12,628,801		$	13,675,445

FFO and MFFO may be used to fund all or a portion of certain capitalizable items that are excluded from FFO and MFFO, such as tenant improvements, building improvements and deferred leasing costs.

Off-Balance Sheet Arrangements

As of March 31, 2017, we had no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial conditions, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

Related-Party Transactions and Agreements

We have entered into agreements with our advisor and its affiliates whereby we have paid, and may continue to pay, certain fees to, or reimburse certain expenses of, our advisor or its affiliates for acquisition and advisory fees and expenses, financing coordination fees, organization and offering costs, asset and property management fees and expenses, leasing fees and reimbursement of certain operating costs. Refer to Note 8 to our condensed consolidated unaudited financial statements included in this Quarterly Report on Form 10-Q for a discussion of the various related-party transactions, agreements and fees.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We may be exposed to the effects of interest rate changes as a result of borrowings used to maintain liquidity and to fund the acquisition, expansion and refinancing of our real estate investment portfolio and operations. We may be also exposed to the effects of changes in interest rates as a result of the acquisition and origination of mortgage, mezzanine, bridge and other loans. Our profitability and the value of our investment portfolio may be adversely affected during any period as a result of interest rate changes. Our interest rate risk management objectives are to limit the impact of interest rate changes on earnings,

50

PART I — FINANCIAL INFORMATION (continued)

prepayment penalties and cash flows and to lower overall borrowing costs. We have managed and will continue to manage interest rate risk by maintaining a ratio of fixed rate, long-term debt such that floating rate exposure is kept at an acceptable level. In addition, we have, and may in the future, utilize a variety of financial instruments, including interest rate caps, floors and swap agreements, in order to limit the effects of changes in interest rates on our operations. When we use these types of derivatives to hedge the risk of interest-earning assets or interest-bearing liabilities, we may be subject to certain risks, including the risk that losses on a hedge position will reduce the funds available for payments to holders of our common stock and that the losses may exceed the amount we invested in the instruments.

We borrow funds and make investments at a combination of fixed and variable rates. Interest rate fluctuations will generally not affect our future earnings or cash flows on our fixed rate debt unless such instruments mature or are otherwise terminated. However, interest rate changes will affect the fair value of our fixed rate instruments. At March 31, 2017, the fair value of our fixed rate debt was $465,053,739 and the carrying value of our fixed rate debt was $469,147,705. The fair value estimate of our fixed rate debt was estimated using a discounted cash flow analysis utilizing rates we would expect to pay for debt of a similar type and remaining maturity if the loans were originated at March 31, 2017. As we expect to hold our fixed rate instruments to maturity and the amounts due under such instruments would be limited to the outstanding principal balance and any accrued and unpaid interest, we do not expect that fluctuations in interest rates, and the resulting change in fair value of our fixed rate instruments, would have a significant impact on our operations.

Conversely, movements in interest rates on our variable rate debt would change our future earnings and cash flows, but not significantly affect the fair value of those instruments. However, changes in required risk premiums would result in changes in the fair value of floating rate instruments. At March 31, 2017, the fair value of our variable rate debt was $754,590,773 and the carrying value of our variable rate debt was $746,397,973. Based on interest rates as of March 31, 2017, if interest rates are 100 basis points higher during the 12 months ending March 31, 2018, interest expense on our variable rate debt would increase by $7,689,390 and if interest rates are 100 basis points lower during the 12 months ending March 31, 2018, interest expense on our variable rate debt would decrease by $7,399,784.

At March 31, 2017, the weighted-average interest rate of our fixed rate debt and variable rate debt was 4.06% and 3.13%, respectively. The weighted-average interest rate of our blended fixed and variable rates was 3.49% at March 31, 2017. The weighted-average interest rate represents the actual interest rate in effect at March 31, 2017 (consisting of the contractual interest rate), using interest rate indices as of March 31, 2017, where applicable.

We will also be exposed to credit risk. Credit risk is the failure of the counterparty to perform under the terms of a derivative contract. If the fair value of a derivative contract is positive, the counterparty will owe us, which creates credit risk for us. If the fair value of a derivative contract is negative, we will owe the counterparty and, therefore, do not have credit risk. We will seek to minimize the credit risk in derivative instruments by entering into transactions with high-quality counterparties. As of March 31, 2017, we did not have counterparty risk on our interest rate cap agreements as the underlying variable rates for each of our interest rate cap agreements as of March 31, 2017 were not in excess of the capped rates. See also Note 11 to our condensed consolidated unaudited financial statements included in this Quarterly Report on Form 10-Q.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

As of the end of the period covered by this report, our management, including our principal executive officer and our principal financial officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based upon and as of the date of the evaluation, our chief executive officer and principal financial officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report to ensure that information required to be disclosed in the reports we file and submit under the Exchange Act is recorded, processed, summarized and reported as and when required. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports we file and submit under the Exchange Act is accumulated and communicated to our management, including

51

PART I — FINANCIAL INFORMATION (continued)

our chief executive officer and our principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting that occurred during the quarter ending March 31, 2017 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

52

PART II — OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, we are party to legal proceedings that arise in the ordinary course of our business. Management is not aware of any legal proceedings of which the outcome is reasonably likely to have a material adverse effect on our results of operations or financial condition, nor are we aware of any such legal proceedings contemplated by government agencies.

Item 1A. Risk Factors

None.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

During the three months ended March 31, 2017, we fulfilled redemption requests and redeemed shares of our common stock pursuant to our share repurchase program as follows:

	Total Number of Shares Requested to be Redeemed(1)	Total Number of Shares Redeemed(2)	Average Price Paid per Share(3)(4)		Approximate Dollar Value of Shares Available That May Yet Be Redeemed Under the Program
January 2017	169,751	183,955	$	10.87	(5)
February 2017	169,275	—	—		(5)
March 2017	180,670	—	—		(5)
	519,696	183,955

________________

(1) We generally redeem shares on the last business day of the month following the end of each fiscal quarter in which requests were received. On April 28, 2017, we redeemed 180,226 shares of our common stock for a total redemption value of $2,000,000, or $11.10 per share, pursuant to our share repurchase program.

(2) We are not obligated to repurchase shares under the share repurchase program.

(3) Pursuant to the program, as amended, we currently redeem shares at prices determined as follows:

• 92.5% of the estimated value per share for stockholders who have held their shares for at least one year;

• 95.0% of the estimated value per share for stockholders who have held their shares for at least two years;

• 97.5% of the estimated value per share for stockholders who have held their shares for at least three years; and

• 100.0% of the estimated value per share for stockholders who have held their shares for at least four years;

Notwithstanding the above, the redemption price for redemptions sought upon a stockholder’s death or “qualifying disability” will be equal to the average issue price per share for all of the stockholder’s shares purchased from us.

(4) For the three months ended March 31, 2017, the sources of the cash used to redeem shares were 100% from existing cash and cash equivalents that were available from the refinancing transactions.

(5) The number of shares that may be redeemed pursuant to the share repurchase program during any calendar year is limited to 5% of the weighted-average number of shares outstanding during the prior calendar year and the value of the shares repurchased shall not exceed $2,000,000 during the quarter beginning July 1, 2015, with shares repurchased each subsequent quarter not to exceed $1,000,000. Effective with the October 2016 repurchase date, the value of the shares that may be repurchased pursuant to the share repurchase program increased from $1,000,000 to $2,000,000.

53

PART II—OTHER INFORMATION (continued)

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits

The exhibits listed on this Exhibit Index (following the signatures section of this Quarterly Report on Form 10-Q) are filed herewith, or incorporated by reference.

54

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		Steadfast Income REIT, Inc.
Date:	May 11, 2017	By:	/s/ Rodney F. Emery
			Rodney F. Emery
			Chief Executive Officer and Chairman of the Board (Principal Executive Officer)
Date:	May 11, 2017	By:	/s/ Kevin J. Keating
			Kevin J. Keating
			Treasurer (Principal Financial and Accounting Officer)

55

EXHIBIT INDEX

Effective February 1, 2010, Steadfast Secure Income REIT, Inc., Steadfast Secure Income Advisor, LLC and Steadfast Secure Income REIT Operating Partnership, L.P. changed their names to Steadfast Income REIT, Inc., Steadfast Income Advisor, LLC and Steadfast Income REIT Operating Partnership, L.P., respectively. With respect to documents executed prior to the name change, the following Exhibit Index refers to the entity names used prior to the name changes in order to accurately reflect the names of the entities that appear on such documents.

The following exhibits are included, or incorporated by reference, in this Quarterly Report on Form 10-Q for the three months ended March 31, 2017 (and are numbered in accordance with Item 601 of Regulation S-K).

3.1 Third Articles of Amendment and Restatement of Steadfast Income REIT, Inc. (included as Exhibit 3.1 to the Company’s Current Report on Form 8-K filed August 6, 2014 and incorporated herein by reference).

3.2 Bylaws of Steadfast Secure Income REIT, Inc. (included as Exhibit 3.2 to the Company’s Registration Statement on Form S-11 (File No. 333-160748) filed July 23, 2009 and incorporated herein by reference).

31.1* Certification of the Principal Executive Officer pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2* Certification of the Principal Financial Officer pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1** Certification of the Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2** Certification of the Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS* XBRL Instance Document.

101.SCH* XBRL Taxonomy Extension Schema Document.

101.CAL* XBRL Taxonomy Extension Calculation Linkbase Document.

101.LAB* XBRL Taxonomy Extension Labels Linkbase Document.

101.PRE* XBRL Taxonomy Extension Presentation Linkbase Document.

101.DEF* XBRL Taxonomy Extension Definition Linkbase Document.

____________

* Filed herewith.

** In accordance with Item 601(b)(32) of Regulation S-K, this Exhibit is not deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section. Such certifications will not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference.

EX-31.1

EXHIBIT 31.1

Certification of Principal Executive Officer Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, Rodney F. Emery, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Steadfast Income REIT, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 11, 2017

By:	/s/ Rodney F. Emery
	Rodney F. Emery
	Chief Executive Officer and Chairman of the Board (Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

Certification of Principal Financial and Accounting Officer Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, Kevin J. Keating, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Steadfast Income REIT, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 11, 2017

By:	/s/ Kevin J. Keating
	Kevin J. Keating
	Treasurer (Principal Financial and Accounting Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

     Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and in connection with the Quarterly Report on Form 10-Q of Steadfast Income REIT, Inc. (the “Company”) for the period ended March 31, 2017, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, the Principal Executive Officer of the Company, certifies, to his knowledge, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 11, 2017

By:	/s/ Rodney F. Emery
	Rodney F. Emery
	Chief Executive Officer and Chairman of the Board (Principal Executive Officer)

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

     Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and in connection with the Quarterly Report on Form 10-Q of Steadfast Income REIT, Inc. (the “Company”) for the period ended March 31, 2017, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, the Principal Financial and Accounting Officer of the Company, certifies, to his knowledge, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 11, 2017

By:	/s/ Kevin J. Keating
	Kevin J. Keating
	Treasurer (Principal Financial and Accounting Officer)

XML

Document and Entity Information Document - shares	3 Months Ended
	Mar. 31, 2017	May 05, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	Steadfast Income REIT, Inc.
Entity Central Index Key	0001468010
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding (in shares)		75,838,829

XML

CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Real Estate:
Land	$ 174,102,422	$ 174,102,422
Building and improvements	1,521,600,455	1,517,532,273
Other intangible assets	2,644,263	2,644,263
Total real estate, cost	1,698,347,140	1,694,278,958
Less accumulated depreciation and amortization	(250,695,674)	(232,744,083)
Total real estate, net	1,447,651,466	1,461,534,875
Cash and cash equivalents	55,200,301	66,224,027
Restricted cash	16,741,218	27,553,851
Short-term investments	30,000,000	30,084,750
Rents and other receivables	2,903,177	2,750,520
Other assets	3,351,042	4,786,762
Total assets	1,555,847,204	1,592,934,785
Liabilities:
Accounts payable and accrued liabilities	34,434,803	47,377,341
Notes payable:
Mortgage notes payable, net	982,767,140	985,080,154
Credit facility, net	232,778,538	232,636,126
Total notes payable, net	1,215,545,678	1,217,716,280
Distributions payable	4,627,865	4,625,355
Due to affiliates	1,887,582	2,787,566
Total liabilities	1,256,495,928	1,272,506,542
Commitments and contingencies (Note 10)
Stockholders’ Equity:
Preferred stock, $0.01 par value per share; 100,000,000 shares authorized, no shares issued and outstanding	0	0
Additional paid-in capital	670,035,064	672,018,194
Cumulative distributions and net losses	(371,443,987)	(352,351,990)
Total stockholders’ equity	299,351,276	320,428,243
Total liabilities and stockholders’ equity	1,555,847,204	1,592,934,785
Common stock, $0.01 par value per share; 999,999,000 shares authorized, 76,575,259 and 76,674,502 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively [Member]
Notes payable:
Distributions payable	4,627,865	4,625,355
Stockholders’ Equity:
Stock $0.01 par value per share	760,189	762,029
Convertible stock, $0.01 par value per share; 1,000 shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively [Member]
Stockholders’ Equity:
Stock $0.01 par value per share	$ 10	$ 10

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Stockholders’ Equity:
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares outstanding (in shares)	0	0
Preferred stock, shares issued (in shares)	0	0
Common Stock [Member]
Stockholders’ Equity:
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	999,999,000	999,999,000
Common stock, shares issued (in shares)	76,575,259	76,674,502
Common stock, shares outstanding (in shares)	76,575,259	76,674,502
Convertible Stock [Member]
Stockholders’ Equity:
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	1,000	1,000
Common stock, shares issued (in shares)	1,000	1,000
Common stock, shares outstanding (in shares)	1,000	1,000

XML

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenues:
Rental income	$ 48,215,774	$ 47,170,635
Tenant reimbursements and other	6,064,491	5,736,273
Total revenues	54,280,265	52,906,908
Expenses:
Operating, maintenance and management	14,076,201	13,709,810
Real estate taxes and insurance	9,812,747	8,911,021
Fees to affiliates	5,622,023	5,522,423
Depreciation and amortization	17,953,723	16,947,268
Interest expense	10,848,036	10,046,840
General and administrative expenses	1,612,410	1,387,688
Total expenses	59,925,140	56,525,050
Net loss	$ (5,644,875)	$ (3,618,142)
Loss per common share - basic and diluted (in dollars per share)	$ (0.07)	$ (0.05)
Weighted average number of common shares outstanding — basic and diluted (in shares)	76,066,450	76,350,555
Distributions declared per common share (in dollars per share)	$ 0.177	$ 0.178

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CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)	Total	Common Stock [Member]	Common Stock [Member] Common Stock [Member]	Common Stock [Member] Convertible Stock [Member]	Additional Paid-In Capital [Member]	Cumulative Distributions & Net Losses [Member]
BALANCE, beginning of period at Dec. 31, 2015	$ 406,447,523		$ 766,745	$ 10	$ 677,624,840	$ (271,944,072)
BALANCE, beginning of period (in shares) at Dec. 31, 2015			76,674,502	1,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock	0		$ 75		(75)
Issuance of common stock (in shares)			7,500
Transfers to redeemable common stock	(1,000,000)				(1,000,000)
Redemption of common stock	(5,000,000)		$ (4,791)		(4,995,209)
Redemption of common stock (in shares)			(479,140)
Distributions declared	(54,828,267)					(54,828,267)
Amortization of stock-based compensation	76,285				76,285
Change in value of restricted common stock to Advisor	312,353				312,353
Net loss	(25,579,651)					(25,579,651)
BALANCE, end of period at Dec. 31, 2016	320,428,243		$ 762,029	$ 10	672,018,194	(352,351,990)
BALANCE, end of period (in shares) at Dec. 31, 2016			76,202,862	1,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Redemption of common stock	(2,000,000)		$ (1,840)		(1,998,160)
Redemption of common stock (in shares)			(183,955)
Distributions declared	(13,447,122)	$ (13,447,122)				(13,447,122)
Amortization of stock-based compensation	15,030				15,030
Net loss	(5,644,875)					(5,644,875)
BALANCE, end of period at Mar. 31, 2017	$ 299,351,276		$ 760,189	$ 10	$ 670,035,064	$ (371,443,987)
BALANCE, end of period (in shares) at Mar. 31, 2017			76,018,907	1,000

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CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash Flows from Operating Activities:
Net loss	$ (5,644,875)	$ (3,618,142)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	17,953,723	16,947,268
Amortization of deferred financing costs	470,696	382,044
Amortization of stock-based compensation	15,030	12,864
Change in value of restricted common stock to Advisor	0	113,607
Amortization of loan premiums and discounts	(308,639)	(308,698)
Change in fair value of interest rate cap agreements	319,953	232,712
Insurance claim recoveries	(7,895)	0
Loss on disposal of buildings and improvements	4,025	0
Unrealized gain on short-term investments	(84,750)	0
Changes in operating assets and liabilities:
Restricted cash for operating activities	10,621,456	9,544,451
Rents and other receivables	(152,657)	(659,186)
Other assets	1,115,767	951,635
Accounts payable and accrued liabilities	(12,504,541)	(10,840,794)
Due to affiliates	(892,691)	(814,996)
Net cash provided by operating activities	10,904,602	11,942,765
Cash Flows from Investing Activities:
Proceeds from short-term investments	169,500	0
Additions to real estate investments	(4,519,629)	(5,810,659)
Restricted cash for investing activities	191,177	876,767
Proceeds from insurance claims	7,895	0
Net cash used in investing activities	(4,151,057)	(4,933,892)
Cash Flows from Financing Activities:
Proceeds from issuance of mortgage notes payable	303,751	162,086
Principal payments on mortgage notes payable	(2,636,410)	(4,097,630)
Borrowings from credit facility	0	16,000,000
Distributions to common stockholders	(13,444,612)	(13,669,663)
Redemptions of common stock	(2,000,000)	(1,000,000)
Net cash used in financing activities	(17,777,271)	(2,605,207)
Net (decrease) increase in cash and cash equivalents	(11,023,726)	4,403,666
Cash and cash equivalents, beginning of period	66,224,027	32,076,582
Cash and cash equivalents, end of period	55,200,301	36,480,248
Supplemental Disclosures of Cash Flow Information:
Interest Paid	10,262,157	9,598,899
Supplemental Disclosure of Noncash Transactions:
Increase (decrease) in distributions payable	2,510	(20,333)
(Decrease) increase in accounts payable and accrued liabilities from additions to real estate investments	(437,997)	648,313
Decrease in due to affiliates from additions to real estate investments	$ 7,293	$ 129,078

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CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Cash Flows [Abstract]
Interest capitalized	$ 0	$ 25,904

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Organization and Business

3 Months Ended

Mar. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Business

Organization and Business

Steadfast Income REIT, Inc. (the “Company”) was formed on May 4, 2009, as a Maryland corporation that has elected to be treated as, and currently qualifies as, a real estate investment trust (“REIT”). On June 12, 2009, the Company was initially capitalized pursuant to the sale of 22,223 shares of common stock to Steadfast REIT Investments, LLC (the “Sponsor”) at a purchase price of $9.00 per share for an aggregate purchase price of $200,007. On July 10, 2009, Steadfast Income Advisor, LLC (the “Advisor”), a Delaware limited liability company formed on May 1, 2009, invested $1,000 in the Company in exchange for 1,000 shares of convertible stock (the “Convertible Stock”) as described in Note 6.

Substantially all of the Company’s business is conducted through Steadfast Income REIT Operating Partnership, L.P., a Delaware limited partnership formed on July 6, 2009 (the “Operating Partnership”). The Company is the sole general partner of the Operating Partnership. As the Company accepted subscriptions for shares of its common stock in the Public Offering (as defined below), the Company transferred substantially all of the net offering proceeds to the Operating Partnership in exchange for limited partnership interests and the Company’s percentage ownership in the Operating Partnership increased proportionately. The Company and Advisor entered into an Amended and Restated Limited Partnership Agreement of the Operating Partnership (the “Partnership Agreement”) on September 28, 2009.

As of March 31, 2017, the Company owned 65 multifamily properties comprising a total of 16,709 apartment homes and 25,973 square feet of rentable commercial space.

Private Offering

On October 13, 2009, the Company commenced a private offering of up to $94,000,000 in shares of the Company’s common stock at a purchase price of $9.40 per share (with discounts available for certain categories of purchasers) (the “Private Offering”). The Company offered its shares of common stock for sale in the Private Offering pursuant to a confidential private placement memorandum and only to persons that were “accredited investors,” as that term is defined under the Securities Act of 1933, as amended (the “Securities Act”), and Regulation D promulgated thereunder. On July 9, 2010, the Company terminated the Private Offering and on July 19, 2010, the Company commenced its registered public offering described below. The Company sold 637,279 shares of common stock in the Private Offering for gross offering proceeds of $5,844,325.

Public Offering

On July 19, 2010, the Company commenced its initial public offering of up to a maximum of 150,000,000 shares of common stock for sale to the public at an initial price of $10.00 per share (with discounts available for certain categories of purchasers) (the “Primary Offering”). The Company also offered up to 15,789,474 shares of common stock for sale pursuant to the Company’s distribution reinvestment plan (the “DRP,” and together with the Primary Offering, the “Public Offering”) at an initial price of $9.50 per share.The Company could reallocate shares of common stock registered in the Public Offering between the Primary Offering and the DRP.

On July 12, 2012, the Company’s board of directors determined an estimated value per share of the Company’s common stock as of March 31, 2012 of $10.24. As a result of the determination of the estimated value per share of the Company’s common stock, effective September 10, 2012, the offering price of the Company’s common stock to the public in the Primary Offering increased from the previous price of $10.00 per share to $10.24 per share. Additionally, effective September 10, 2012, the price of shares of the Company’s common stock issued pursuant to the DRP increased from a price of $9.50 per share to a price of $9.73 per share, or 95% of the new Primary Offering price of $10.24 per share. Effective September 10, 2012, the Company’s board of directors increased the amount of distributions paid on each share of the Company’s common stock from $0.001917 per share per day to $0.001964 per share per day, which, if paid each day over a 365-day period, is equivalent to a 7.0% annualized distribution rate based on the new offering price of $10.24 per share.

The Company terminated its Public Offering on December 20, 2013. Following termination of the Public Offering, the Company continued to offer shares of common stock pursuant to the DRP until the Company’s board of directors suspended the DRP effective with distributions earned beginning on December 1, 2014. Through December 20, 2013, the Company sold 73,608,337 shares of common stock in the Public Offering for gross proceeds of $745,389,748, including 1,588,289 shares of common stock issued pursuant to the DRP for gross offering proceeds of $15,397,232.

On March 10, 2015, the Company’s board of directors determined an estimated value per share of the Company’s common stock of $10.35 as of December 31, 2014. On February 25, 2016, the Company’s board of directors determined an estimated value per share of the Company’s common stock of $11.44 as of December 31, 2015. On February 15, 2017 the Company’s board of directors determined an estimated value per share of the Company’s common stock of $11.65 as of December 31, 2016.

The business of the Company is externally managed by the Advisor, pursuant to the Advisory Agreement by and among the Company, the Operating Partnership and the Advisor (as amended, the “Advisory Agreement”), which is subject to annual renewal by the Company’s board of directors. The current term of the Advisory Agreement expires on November 15, 2017. Subject to certain restrictions and limitations, the Advisor manages the Company’s day-to-day operations, manages the Company’s portfolio of properties and real estate-related assets, sources and presents investment opportunities to the Company’s board of directors and provides investment management services on the Company’s behalf. Steadfast Capital Markets Group, LLC (the “Dealer Manager”), an affiliate of the Company, served as the dealer manager for the Public Offering. The Advisor, along with the Dealer Manager, also provides marketing, investor relations and other administrative services on the Company’s behalf.

The Partnership Agreement provides that the Operating Partnership is operated in a manner that will enable the Company to (1) satisfy the requirements for being classified as a REIT for tax purposes, (2) avoid any federal income or excise tax liability and (3) ensure that the Operating Partnership will not be classified as a “publicly traded partnership” for purposes of Section 7704 of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), which classification could result in the Operating Partnership being taxed as a corporation, rather than as a partnership. In addition to the administrative and operating costs and expenses incurred by the Operating Partnership in acquiring and operating real properties, the Operating Partnership will pay all of the Company’s administrative costs and expenses, and such expenses will be treated as expenses of the Operating Partnership.

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2017

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

There have been no significant changes to the Company’s accounting policies since it filed its audited financial statements in its Annual Report on Form 10-K for the year ended December 31, 2016. For further information about the Company’s accounting policies, refer to the Company’s consolidated financial statements and notes thereto for the year ended December 31, 2016 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 16, 2017.

Principles of Consolidation and Basis of Presentation

The consolidated financial statements include the accounts of the Company, the consolidated variable interest entity (“VIE”) that the Company controls and of which the Company is the primary beneficiary, and the Operating Partnership’s subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation. The financial statements of the Company’s subsidiaries are prepared using accounting policies consistent with those of the Company. The Operating Partnership is a VIE as the limited partner lacks substantive kick-out rights and substantive participating rights. The Company is the primary beneficiary of, and consolidates, the Operating Partnership.

The accompanying unaudited consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board (“FASB”), Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments that are of a normal and recurring nature and necessary for a fair and consistent presentation of the results of such periods. Operating results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. The unaudited consolidated financial statements herein should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates.

Short-term Investments

Short-term investments consist of any highly-liquid securities that have an original maturity of less than one year but greater than three months at the time of purchase. As of March 31, 2017 and December 31, 2016, short-term investments consisted of $30,000,000 held in a certificate of deposit and are included in short-term investments on the consolidated balance sheets. The certificate of deposit originally matured on March 28, 2017; however, upon maturity, the balance was rolled into a new six-month certificate of deposit. The short-term investment is classified as held-to-maturity and was recorded at the amortized cost on the accompanying consolidated balance sheets. During the three months ended March 31, 2017 and 2016, $84,750 and $0 was included in tenant reimbursements and other on the accompanying consolidated statements of operations.

Fair Value Measurements

Under GAAP, the Company is required to measure certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other assets and liabilities at fair value on a non-recurring basis (e.g., carrying value of impaired real estate loans receivable and long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories:

• Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities;

• Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and

• Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both significant to the fair value measurement and unobservable.

When available, the Company utilizes quoted market prices from an independent third-party source to determine fair value and will classify such items in Level 1 or Level 2. In instances where the market is not active, regardless of the availability of a nonbinding quoted market price, observable inputs might not be relevant and could require the Company to make a significant adjustment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent third party may rely more on models with inputs based on information available only to that independent third party. When the Company determines the market for a financial instrument owned by the Company to be illiquid or when market transactions for similar instruments do not appear orderly, the Company uses several valuation sources (including internal valuations, discounted cash flow analysis and quoted market prices) and will establish a fair value by assigning weights to the various valuation sources.

The following describes the valuation methodologies used by the Company to measure fair value, including an indication of the level in the fair value hierarchy in which each asset or liability is generally classified.

Interest rate cap agreements — The Company has entered into certain interest rate cap agreements. These derivatives did not qualify as fair value hedges. Fair value was based on a model-driven valuation using the associated variable rate curve and an implied market volatility, both of which were observable at commonly quoted intervals for the full term of the interest rate cap agreements. Therefore, the Company’s interest rate cap agreements were classified within Level 2 of the fair value hierarchy and are included in other assets in the accompanying consolidated balance sheets.

The following table reflects the Company’s assets required to be measured at fair value on a recurring basis on the consolidated balance sheets:

	March 31, 2017
	Fair Value Measurements Using
	Level 1		Level 2		Level 3
Assets:
Interest rate cap agreements	$	—	$	298,888	$	—

	December 31, 2016
	Fair Value Measurements Using
	Level 1		Level 2		Level 3
Assets:
Interest rate cap agreements	$	—	$	618,841	$	—

Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values. In this regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in an immediate settlement of the instrument.

Fair Value of Financial Instruments

The accompanying consolidated balance sheets include the following financial instruments: cash and cash equivalents, restricted cash, short-term investments, rents and other receivables, accounts payable and accrued liabilities, distributions payable, due to affiliates and notes payable.

The Company considers the carrying value of cash and cash equivalents, restricted cash, rents and other receivables, accounts payable and accrued liabilities and distributions payable to approximate the fair value of these financial instruments based on the short duration between origination of the instruments and their expected realization. The Company considers the carrying value of short-term investments to approximate fair value as it was recorded at amortized cost. The fair value of amounts due to affiliates is not determinable due to the related party nature of such amounts.

The fair value of the notes payable is estimated using a discounted cash flow analysis using borrowing rates available to the Company for debt instruments with similar terms and maturities. As of March 31, 2017 and December 31, 2016, the fair value of the notes payable was $1,219,644,512 and $1,197,015,105, respectively, compared to the carrying value of $1,215,545,678 and $1,217,716,280, respectively. The Company has determined that its notes payable are classified as Level 3 within the fair value hierarchy.

Distribution Policy

The Company has elected to be taxed as a REIT and to operate as a REIT beginning with its taxable year ending December 31, 2010. To maintain its qualification as a REIT, the Company intends to make distributions each taxable year equal to at least 90% of its REIT taxable income (which is determined without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). Distributions during the three months ended March 31, 2017 and 2016 were based on daily record dates and calculated at a rate of $0.001964 per share per day. Each day during the three months ended March 31, 2017 and 2016 was a distribution record date.

Distributions to stockholders are determined by the board of directors of the Company and are dependent upon a number of factors relating to the Company, including funds available for the payment of distributions, financial condition, the timing of property acquisitions, capital expenditure requirements and annual distribution requirements in order for the Company to qualify as a REIT under the Internal Revenue Code. During the three months ended March 31, 2017 and 2016, the Company declared distributions of $0.177 and $0.178 per common share, respectively.

Per Share Data

Basic earnings (loss) per share attributable to common stockholders for all periods presented are computed by dividing net income (loss) by the weighted average number of shares of the Company’s common stock outstanding during the period. Diluted earnings (loss) per share is computed based on the weighted average number of shares of the Company’s common stock and all potentially dilutive securities, if any. Distributions declared per common share assume each share was issued and outstanding each day during the period. Nonvested shares of the Company’s restricted common stock give rise to potentially dilutive shares of the Company’s common stock, but such shares were excluded from the computation of diluted earnings (loss) per share because such shares were anti-dilutive during the period.

In accordance with FASB ASC Topic 260-10-45, Earnings Per Share, the Company uses the two-class method to calculate earnings (loss) per share. Basic earnings (loss) per share is calculated based on dividends declared and the rights of common shares and participating securities in any undistributed earnings, which represents net income (loss) remaining after deduction of dividends declared during the period. The undistributed earnings (loss) are allocated to all outstanding common shares based on the relative percentage of each class of shares. The Company does not have any participating securities outstanding other than the shares of common stock and the unvested restricted common stock during the periods presented. Earnings (loss) attributable to the unvested restricted common stock are deducted from earnings (loss) in the computation of per share amounts where applicable.

Segment Disclosure

The Company has determined that it has one reportable segment with activities related to investing in multifamily properties. The Company’s investments in real estate are in different geographic regions, and management evaluates operating performance on an individual asset level. However, as each of the Company’s assets has similar economic characteristics, tenants and products and services, its assets have been aggregated into one reportable segment.

Recent Accounting Pronouncements

In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606). The new guidance requires an entity to recognize the revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The new guidance supersedes the revenue requirements in Revenue Recognition (Topic 605) and most industry-specific guidance throughout the Industry Topics of the Codification. The new guidance does not apply to lease contracts within the scope of Leases (Topic 840). In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606), which delayed the effective date of the new guidance by one year, which will result in the new guidance being effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and is to be applied retrospectively. Early adoption is permitted, but can be no earlier than the original public entity effective date of fiscal years, and interim periods within those years, beginning after December 15, 2016. The Company anticipates selecting the modified retrospective transition method with a cumulative effect recognized as of the date of adoption and will adopt the new standard effective January 1, 2018. The Company is continuing to evaluate the standard; however, the Company does not expect its adoption to have a material impact on the consolidated financial statements, as rental income from leasing arrangements is specifically excluded from the standard.

In February 2016, the FASB issued ASU 2016-02, Leases, amending the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. The new standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The guidance will be effective in the first quarter of 2019 and allows for early adoption. The Company is continuing to evaluate the standard; however, the Company does not expect its adoption to have a material impact on the consolidated financial statements, as lessor accounting for leases will be substantially equivalent to existing guidance.

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718), Improvements toEmployee Share-Based Payment Accounting, that simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. The guidance is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those years. The Company did not experience a material impact from adopting this new guidance.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force), that clarifies how certain cash receipts and cash payments should be classified on the statement of cash flows. This ASU addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The guidance is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those years. Early adoption is permitted. The Company did not experience a material impact from adopting this new guidance.

In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU No. 2016-18”). ASU No. 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, restricted cash and restricted cash equivalents. Therefore, amounts generally described as restricted cash should be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. ASU No. 2016-18 is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements and related disclosures.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the definition of business, that clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of businesses. This ASU provides a screen to determine when a set is not a business. If the screen is not met, it (1) requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) removes the evaluation of whether a market participant could replace the missing elements. The guidance is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those years. Early adoption is permitted. Upon adoption of this new guidance during the three months ended March 31, 2017, the Company did not experience a material impact.

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Real Estate

3 Months Ended

Mar. 31, 2017

Real Estate [Abstract]

Real Estate

Real Estate

As of March 31, 2017, the Company owned 65 multifamily properties, encompassing in the aggregate 16,709 apartment homes and 25,973 square feet of rentable commercial space. The total purchase price of the Company’s real estate portfolio, including development and construction costs for apartment homes constructed by the Company, was $1,644,189,381. As of March 31, 2017 and December 31, 2016, the Company’s portfolio was approximately 93.6% and 93.5% occupied and the average monthly rent was $1,025 and $1,026, respectively.

As of March 31, 2017 and December 31, 2016, accumulated depreciation and amortization related to the Company’s consolidated real estate properties and related intangibles were as follows:

	March 31, 2017
	Assets
	Land		Building and Improvements			Other Intangible Assets			Total Real Estate
Investments in real estate	$	174,102,422	$	1,521,600,455		$	2,644,263		$	1,698,347,140
Less: Accumulated depreciation and amortization	—		(250,111,351		)	(584,323		)	(250,695,674		)
Net investments in real estate and related lease intangibles	$	174,102,422	$	1,271,489,104		$	2,059,940		$	1,447,651,466

	December 31, 2016
	Assets
	Land		Building and Improvements			Other Intangible Assets			Total Real Estate
Investments in real estate	$	174,102,422	$	1,517,532,273		$	2,644,263		$	1,694,278,958
Less: Accumulated depreciation and amortization	—		(232,198,052		)	(546,031		)	(232,744,083		)
Net investments in real estate and related lease intangibles	$	174,102,422	$	1,285,334,221		$	2,098,232		$	1,461,534,875

Depreciation and amortization expenses were $17,953,723 and $16,947,268 for the three months ended March 31, 2017 and 2016, respectively.

Depreciation of the Company’s buildings and improvements were $17,915,431 and $16,908,976 for the three months ended March 31, 2017 and 2016, respectively.

Amortization of the Company’s other intangible assets for the three months ended March 31, 2017 and 2016 were $38,292 and $38,292, respectively.

The future amortization of the Company’s acquired other intangible assets as of March 31, 2017 and thereafter is as follows:

April 1 through December 31, 2017	$	114,876
2018	153,168
2019	153,168
2020	153,168
2021	153,168
Thereafter	1,332,392
	$	2,059,940

Operating Leases

As of March 31, 2017, the Company’s real estate portfolio comprised 16,709 residential apartment homes and was 95.8% leased by a diverse group of residents. For each of the three months ended March 31, 2017 and 2016, the Company’s real estate portfolio earned approximately 99% and 1% of its rental income from residential tenants and commercial office tenants, respectively. The residential tenant lease terms consist of lease durations equal to 12 months or less. The commercial office tenant leases consist of remaining lease durations varying from 2.17 to 8.01 years.

Some residential and commercial leases contain provisions to extend the lease agreements, options for early termination after paying a specified penalty and other terms and conditions as negotiated. The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. Generally, upon the execution of a lease, the Company requires security deposits from tenants in the form of a cash deposit and/or a letter of credit for commercial tenants. Amounts required as security deposits vary depending upon the terms of the respective leases and the creditworthiness of the tenant, but generally are not significant amounts. Therefore, exposure to credit risk exists to the extent that a receivable from a tenant exceeds the amount of its security deposit. Security deposits received in cash related to tenant leases are included in accounts payables and accrued liabilities in the accompanying consolidated balance sheets and totaled $5,083,549 and $5,047,792 as of March 31, 2017 and December 31, 2016, respectively.

The future minimum rental receipts from the Company’s properties under non-cancelable operating leases attributable to commercial office tenants as of March 31, 2017 and thereafter is as follows:

April 1 through December 31, 2017	$	191,526
2018	259,143
2019	180,858
2020	74,313
2021	76,535
Thereafter	264,345
	$	1,046,720

As of March 31, 2017 and December 31, 2016, no tenant represented over 10% of the Company’s annualized base rent and there were no significant industry concentrations with respect to its commercial leases.

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Other Assets

3 Months Ended

Mar. 31, 2017

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Assets

Other Assets

As of March 31, 2017 and December 31, 2016, other assets consisted of:

	March 31, 2017		December 31, 2016
Prepaid expenses	$	1,929,301	$	3,041,353
Interest rate cap agreements (Note 11)	298,888		618,841
Other deposits	1,122,853		1,126,568
Other assets	$	3,351,042	$	4,786,762

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Debt

3 Months Ended

Mar. 31, 2017

Debt Disclosure [Abstract]

Debt

Debt

Mortgage Notes Payable

The following is a summary of mortgage notes payable secured by real property as of March 31, 2017 and     December 31, 2016:

	March 31, 2017
			Interest Rate Range				Weighted Average Interest Rate
Type	Number of Instruments	Maturity Date Range	Minimum		Maximum				Principal Outstanding
Mortgage notes payable - fixed	37	10/1/2017 - 10/1/2056	3.19	%	5.94	%	4.06	%	$	469,122,776
Mortgage notes payable - variable(1)	21	8/31/2017 - 1/1/2026	1-Mo LIBOR + 1.65%		1-Mo LIBOR + 2.65%		3.26	%	517,774,385
Total mortgage notes payable	58						3.63	%	986,897,161
Premium, net(2)									1,899,980
Deferred financing costs, net(3)									(6,030,001		)
Total mortgage notes payable, net									$	982,767,140

	December 31, 2016
			Interest Rate Range				Weighted Average Interest Rate
Type	Number of Instruments	Maturity Date Range	Minimum		Maximum				Principal Outstanding
Mortgage notes payable - fixed	37	10/1/2017 - 10/1/2056	3.19	%	5.94	%	4.06	%	$	471,344,145
Mortgage notes payable - variable(1)	21	8/31/2017 - 1/1/2026	1-Mo LIBOR + 1.65%		1-Mo LIBOR + 2.65%		3.05	%	517,885,675
Total mortgage notes payable	58						3.52	%	989,229,820
Premium, net(2)									2,208,619
Deferred financing costs, net(3)									(6,358,285		)
Total mortgage notes payable, net									$	985,080,154

_______________

(1) See Note 11 for a discussion of the interest rate cap agreements used to manage the exposure to interest rate movement on the Company’s variable rate loans.

(2) The following table summarizes the debt premiums as of March 31, 2017, including the unamortized portion included in the principal balance as well as amounts amortized as an offset to interest expense in the accompanying consolidated statements of operations:

Unamortized Portion of Net Debt Premium as of March 31, 2017		Amortization of Net Debt Premium During the Three Months Ended March 31,
		2017		2016
$	1,899,980	$	308,639	$	308,698

(3) The following table summarizes the deferred financing costs, net related to mortgage notes payable as of March 31, 2017 and December 31, 2016:

	March 31, 2017			December 31, 2016
Deferred financing costs	$	10,104,244		$	10,104,244
Less: accumulated amortization	(4,074,243		)	(3,745,959		)
Deferred financing costs, net	$	6,030,001		$	6,358,285

Refinancing Transactions

On June 29 and June 30, 2016, 14 wholly-owned subsidiaries of the Company terminated the existing mortgage loans with their respective lenders for an aggregate principal amount of $283,313,677 and entered into new loan agreements (each, a “Loan Agreement”) with, as applicable, PNC Bank, National Association (“PNC Bank”) and Berkeley Point Capital LLC (“Berkeley” and, together with PNC Bank, the “Lenders”) for an aggregate principal amount of $358,002,000 (the “June Refinancing Transactions”). On July 29, 2016, nine wholly-owned subsidiaries of the Company also entered into a credit agreement (the “Credit Agreement”) with PNC Bank in connection with the refinancing of certain additional mortgage loans as further detailed below. Further, on August 30, 2016 and September 29, 2016, three wholly-owned subsidiaries of the Company terminated the existing mortgage loans with an aggregate principal amount of $61,575,025 and entered into new mortgage notes for an aggregate principal amount of $63,620,600 (together with the June Refinancing Transactions, the “Refinancing Transactions”).

In the June Refinancing Transactions, each Loan Agreement was made pursuant to the Freddie Mac Capital Markets Execution Program (the “CME”), as evidenced by a multifamily note. Pursuant to the CME, the applicable Lender originates the mortgage loan and then transfers the loan to the Federal Home Loan Mortgage Association. Each Loan Agreement provides for a term loan with a maturity date of July 1, 2023, unless the maturity date is accelerated in accordance with its terms. Each loan accrues interest at one-month London Interbank Offered Rate (“LIBOR”) plus 2.31%. The entire outstanding principal balance and any accrued and unpaid interest on each of the Loans are due on the maturity date. Interest and principal payments on the loans are payable monthly in arrears on specified dates as set forth in each Loan Agreement. Monthly payments are due and payable on the first day of each month, commencing August 1, 2016.

Credit Facility

On July 29, 2016, nine wholly-owned subsidiaries of the Company entered into the Credit Agreement and a multifamily note with PNC Bank (the Credit Agreement, multifamily note, loan and security agreements, mortgages and guaranty, collectively referred to herein as the “Loan Documents”) that provide for a new credit facility in an amount not to exceed $350,000,000 to refinance certain of the Company’s existing mortgage loans. The credit facility has a maturity date of August 1, 2021, subject to extension, as further described in the Credit Agreement. Advances made under the credit facility are secured by the properties set out in the schedule below (the “Collateral Pool Property”), pursuant to a mortgage deed of trust with the nine wholly-owned subsidiaries of the Company in favor of PNC Bank.

The credit facility accrues interest at the one-month LIBOR plus (1) the servicing spread of 0.05% and (2) the net spread, based on the debt service coverage ratio, of between 1.73% and 1.93%, as further described in the Credit Agreement. The entire outstanding principal balance and any accrued and unpaid interest on the credit facility are due on the maturity date. Interest only payments on the credit facility are payable monthly in arrears and are due and payable on the first day of each month, commencing September 1, 2016. The Company’s nine wholly-owned subsidiaries may voluntarily prepay all or a portion of the amounts advanced under the Loan Documents. Notwithstanding the foregoing, in the event a Collateral Pool Property is released or the Credit Agreement is terminated, a termination fee is due and payable by the Company’s nine wholly-owned subsidiaries. In certain instances of a breach of the Credit Agreement, the Company guarantees to PNC Bank the full and prompt payment and performance when due of all amounts for which the Company’s nine wholly-owned subsidiaries are personally liable under the Loan Documents, in addition to all costs and expenses incurred by PNC Bank in enforcing such guaranty. The Company paid loan origination fees to PNC Bank of $1,293,186, and the Advisor earned a refinancing fee of $1,175,624.

As of March 31, 2017 and December 31, 2016, the advances obtained under the credit facility on July 29, 2016 are summarized in the following table:

	Amount of Advance as of
Collateralized Property(1)	March 31, 2017			December 31, 2016
Ashley Oaks Apartment Homes	$	24,867,500		$	24,867,500
Trails at Buda Ranch	21,025,000			21,025,000
Deer Valley Apartments	22,982,500			22,982,500
Carrington Park at Huffmeister	20,430,500			20,430,500
Carrington Place	27,535,500			27,535,500
Carrington at Champion Forest	25,121,250			25,121,250
Audubon Park Apartments	16,602,500			16,602,500
Oak Crossing	17,980,000			17,980,000
Meritage at Steiner Ranch	58,580,000			58,580,000
	$	235,124,750		$	235,124,750
Deferred financing costs, net on credit facility(2)	(2,346,212		)	(2,488,624		)
Credit facility, net	$	232,778,538		$	232,636,126

___________

(1) Each property is pledged as collateral for repayment of all amounts advanced under the credit facility.

(2) Accumulated amortization related to deferred financing costs for the credit facility as of March 31, 2017 and December 31, 2016, was $575,934 and $433,522, respectively.

Maturity and Interest

The following is a summary of the Company’s aggregate maturities as of March 31, 2017:

					Maturities During the Years Ending December 31,
Contractual Obligation	Total		Remainder of 2017		2018		2019		2020		2021		Thereafter
Principal payments on outstanding debt obligations(1)	$	1,222,021,911	$	47,836,071	$	75,880,559	$	101,893,298	$	87,550,294	$	278,217,869	$	630,643,820

________________

(1) Projected principal payments on outstanding debt obligations are based on the terms of the notes payable agreements. Amounts exclude the amortization of the deferred financing costs and debt premiums associated with certain notes payable.

The Company’s notes payable contain customary financial and non-financial debt covenants. As of March 31, 2017 and December 31, 2016, the Company was in compliance with all financial and non-financial debt covenants. The Company has significant debt maturing within one year from the date the consolidated financial statements are available to be issued. Although the Company does not currently have the liquid funds necessary to repay the debt at maturity, it believes that it is probable that it will be able to refinance all or a portion of the debt prior to maturity.

For the three months ended March 31, 2017 and 2016, the Company incurred interest of $10,848,036 and $10,072,744. Interest expense for the three months ended March 31, 2017 and 2016 includes amortization of deferred financing costs of $470,696 and $382,044, amortization of loan premiums and discounts of $308,639 and $308,698, net unrealized loss from the change in fair value of interest rate cap agreements of $319,953 and $232,712 and capitalized interest of $0 and $25,904, respectively. The capitalized interest is included in real estate on the consolidated balance sheets.

Interest expense of $3,548,031 and $3,444,162 was payable as of March 31, 2017 and December 31, 2016, respectively, and is included in accounts payable and accrued liabilities in the accompanying consolidated balance sheets.

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Stockholders' Equity

3 Months Ended

Mar. 31, 2017

Equity [Abstract]

Stockholders' Equity

Stockholders’ Equity

General

Under the Company’s Third Articles of Amendment and Restatement (the “Charter”), the total number of shares of capital stock authorized for issuance is 1,100,000,000 shares, consisting of 999,999,000 shares of common stock with a par value of $0.01 per share, 1,000 shares of convertible stock with a par value of $0.01 per share and 100,000,000 shares designated as preferred stock with a par value of $0.01 per share.

Common Stock

The shares of the Company’s common stock entitle the holders to one vote per share on all matters upon which stockholders are entitled to vote, to receive dividends and other distributions as authorized by the Company’s board of directors in accordance with the Maryland General Corporation Law and to all rights of a stockholder pursuant to the Maryland General Corporation Law. The common stock has no preferences or preemptive, conversion or exchange rights.

During 2009, the Company issued 22,223 shares of common stock to the Sponsor for $200,007. From inception through March 31, 2017, the Company had issued 76,732,395 shares of common stock in its Private Offering and Public Offering for offering proceeds of $679,572,220, net of offering costs of $95,845,468, including 4,073,759 shares of common stock pursuant to the DRP, for total proceeds of $39,580,847. Offering costs primarily consisted of selling commissions and dealer manager fees. The Company terminated its Public Offering on December 20, 2013, but continued to offer shares pursuant to the DRP through November 30, 2014.

The issuance and vesting activity for the three months ended March 31, 2017 and for the year ended December 31, 2016 for the restricted stock issued to the Company’s independent directors as compensation for services in connection with their re-election to the board of directors at the Company’s annual meeting is as follows:

	For the Three Months Ended March 31, 2017	For the Year Ended December 31, 2016
Nonvested shares at the beginning of the period	11,875	11,250
Granted shares	—	7,500
Vested shares	—	(6,875	)
Nonvested shares at the end of the period	11,875	11,875

The weighted average fair value of restricted stock issued to the Company’s independent directors for the three months ended March 31, 2017 and for the year ended December 31, 2016 is as follows:

Grant Year	Weighted Average Fair Value
2016	$	11.44
2017	n/a

The shares of restricted common stock vest and become non-forfeitable in four equal annual installments beginning on the date of grant and ending on the third anniversary of the date of grant and will become fully vested and become non-forfeitable on the earlier to occur of (1) the termination of the independent director’s service as a director due to death or disability, or (2) a change in control of the Company and as otherwise provided in the Incentive Award Plan, as defined below.

Included in general and administrative expenses is $15,030 and $12,864 for the three months ended March 31, 2017 and 2016, respectively, for compensation expense related to the issuance of restricted common stock. The weighted average remaining vesting term of the restricted common stock is 1.47 years as of March 31, 2017. As of March 31, 2017, the compensation expense related to the issuance of the restricted common stock not vested was $90,080.

On June 11, 2014, the Company entered into a restricted stock agreement with the Advisor whereby the Company issued to the Advisor 488,281.25 restricted shares of the Company’s common stock at a fair market value of $10.24 per share in satisfaction of certain deferred fees due to the Advisor in the aggregate amount of $5,000,000. Pursuant to the restricted stock agreement, the shares of restricted stock vested and became non-forfeitable 50% at December 31, 2015 and 50% at December 31, 2016. The fair value of the vested common stock issued to the Advisor as of March 31, 2017 and December 31, 2016 of $5,637,207 was recorded in stockholders’ equity in the accompanying consolidated balance sheets. Included in general and administrative expenses on the accompanying consolidated statements of operations is $0 and $113,607 for the three months ended March 31, 2017 and 2016, respectively, for the change in value of restricted common stock issued to the Advisor.

Convertible Stock

The Company issued 1,000 shares of Convertible Stock to the Advisor for $1,000. The Convertible Stock will convert into shares of the Company’s common stock if and when: (A) the Company has made total distributions on the then outstanding shares of common stock equal to the original issue price of those shares plus an 8.0% cumulative, non-compounded, annual return on the original issue price of those shares, (B) subject to specified conditions, the Company lists the common stock for trading on a national securities exchange or (C) the Advisory Agreement is terminated or not renewed by the Company (other than for “cause” as defined in the Advisory Agreement). A “listing” will also be deemed to have occurred on the effective date of any merger of the Company in which the consideration received by the holders of the Company’s common stock is the securities of another issuer that are listed on a national securities exchange. Upon conversion, each share of Convertible Stock will convert into a number of shares of common stock equal to 1/1000 of the quotient of (A) 10% of the amount, if any, by which (1) the Company’s “enterprise value” (as defined in the Charter) plus the aggregate value of distributions paid to date on the outstanding shares of common stock exceeds (2) the aggregate purchase price paid by the stockholders for those shares plus an 8.0% cumulative, non-compounded, annual return on the original issue price of those shares, divided by (B) the Company’s enterprise value divided by the number of outstanding shares of common stock, in each case calculated as of the date of the conversion. In the event of a termination or non-renewal of the Advisory Agreement by the Company for cause, the Convertible Stock will be redeemed by the Company for $1.00.

Preferred Stock

The Charter also provides the Company’s board of directors with the authority to issue one or more classes or series of preferred stock, and prior to the issuance of such shares of preferred stock, the board of directors shall have the power from time to time to classify or reclassify, in one or more series, any unissued shares and designate the preferences, rights and privileges of such shares of preferred stock. The Company’s board of directors is authorized to amend the Charter, without the approval of the stockholders, to increase the aggregate number of authorized shares of capital stock or the number of shares of any class or series that the Company has authority to issue. As of March 31, 2017 and December 31, 2016, no shares of the Company’s preferred stock were issued and outstanding.

Distribution Reinvestment Plan

The Company’s board of directors had approved the DRP through which common stockholders could elect to reinvest an amount equal to the distributions declared on their shares of common stock in additional shares of the Company’s common stock in lieu of receiving cash distributions. The initial purchase price per share under the DRP was $9.50. Effective September 10, 2012, shares of the Company’s common stock were issued pursuant to the DRP at a price of $9.73 per share. Effective with distributions earned beginning on December 1, 2014, the Company’s board of directors elected to suspend the DRP. As a result, all distributions are paid in cash and not reinvested in shares of the Company’s common stock. The Company’s board of directors may, in its sole discretion, from time to time, reinstate the DRP, although there is no assurance as to if or when this will happen, and change the DRP price based upon changes in the Company’s estimated value per share and other factors that the Company’s board of directors deems relevant.

No sales commissions or dealer manager fees were payable on shares sold through the DRP.

Share Repurchase Program and Redeemable Common Stock

The Company’s share repurchase program may provide an opportunity for stockholders to have their shares of common stock repurchased by the Company, subject to certain restrictions and limitations. No shares can be repurchased under the Company’s share repurchase program until after the first anniversary of the date of purchase of such shares; provided, however, that this holding period shall not apply to repurchases requested within two years after the death or disability of a stockholder.

The purchase price for shares repurchased under the Company’s share repurchase program is as follows:

Share Purchase Anniversary	Repurchase Price on Repurchase Date(1)
Less than 1 year	No Repurchase Allowed
1 year	92.5% of Estimated Value per Share(2)
2 years	95.0% of Estimated Value per Share(2)
3 years	97.5% of Estimated Value per Share(2)
4 years	100.0% of Estimated Value per Share(2)
In the event of a stockholder’s death or disability(3)	Average Issue Price for Shares(4)

________________

(1) As adjusted for any stock dividends, combinations, splits, recapitalizations or any similar transaction with respect to the shares of common stock.

(2) For purposes of the share repurchase program, the “Estimated Value per Share” will equal the most recently determined estimated value per share determined by the Company’s board of directors.

(3) The required one year holding period to be eligible to redeem shares under the Company’s share repurchase program does not apply in the event of death or disability of a stockholder.

(4) The purchase price per share for shares redeemed upon the death or disability of a stockholder will be equal to the average issue price per share for all of the stockholder’s shares.

The purchase price per share for shares repurchased pursuant to the share repurchase program is further reduced by the aggregate amount of net proceeds per share, if any, distributed to the Company’s stockholders prior to the repurchase date as a result of the sale of one or more of the Company’s assets that constitutes a return of capital distribution as a result of such sales.

Repurchases of shares of the Company’s common stock are made quarterly upon written request to the Company at least 15 days prior to the end of the applicable quarter during which the share repurchase program is in effect. Repurchase requests are honored approximately 30 days following the end of the applicable quarter (the “Repurchase Date”). Stockholders may withdraw their repurchase request at any time up to three business days prior the end of the applicable quarter.

During the three months ended March 31, 2017, the Company redeemed a total of 183,955 shares with a total redemption value of $2,000,000 and received net requests for the redemption of 519,696 shares with a total net redemption value of $5,967,020. During the three months ended March 31, 2016, the Company redeemed a total of 99,243 shares with a total redemption value of $1,000,000, and received net requests for the redemption of 347,512 shares with a total net redemption value of $3,763,312. As of March 31, 2017 and 2016, the Company’s total outstanding redemption requests received that were subject to the Company’s limitations on redemptions (discussed below) were 1,646,078 shares and 702,345 shares, respectively, with a total net redemption value of $19,009,693 and $7,759,225, respectively.

The Company cannot guarantee that the funds set aside for the share repurchase program will be sufficient to accommodate all repurchase requests made in any quarter. In the event that the redemption requests exceed the Company’s limitations on redemptions (discussed below) or the Company does not have sufficient funds available to repurchase all of the shares of the Company’s common stock for which repurchase requests have been submitted in any quarter, priority will be given to redemption requests in the case of the death or disability of a stockholder. If the Company repurchases less than all of the shares subject to a repurchase request in any quarter, with respect to any shares which have not been repurchased, the requesting stockholder could (1) withdraw the request for repurchase or (2) ask that the Company honor the request in a future quarter, if any, when such repurchases may be made pursuant to the limitations of the share repurchase program and when sufficient funds were available. Such pending requests would be honored among all requests for redemptions in any given redemption period as follows: first, pro rata as to redemptions sought upon a stockholder’s death or disability; and, next, pro rata as to other redemption requests.

The Company is not obligated to repurchase shares of the Company’s common stock under the share repurchase program. In no event shall redemptions under the share repurchase program exceed 5% of the weighted average number of shares of the Company’s common stock outstanding during the prior calendar year. Effective July 1, 2015, the Company’s board of directors determined to limit the amount of shares repurchased pursuant to the share repurchase program to an amount not to exceed $2,000,000 during the quarter beginning July 1, 2015, with each subsequent quarter not to exceed $1,000,000. On August 9, 2016, the Company’s board of directors approved and authorized an increase to the value of the shares that may be repurchased pursuant to the share repurchase program from $1,000,000 to $2,000,000 per quarter, effective on the October 2016 repurchase date. There is no fee in connection with a repurchase of shares of the Company’s common stock. As of March 31, 2017, the Company has recognized redemptions payable of $2,000,000, which is included in accounts payable and accrued liabilities on the accompanying consolidated balance sheets.

In addition, the Company’s board of directors may, in its sole discretion, amend, suspend, or terminate the share repurchase program at any time upon 30 days’ notice to the Company’s stockholders if it determines that the funds available to fund the share repurchase program are needed for other business or operational purposes or that amendment, suspension or termination of the share repurchase program is in the best interest of the Company’s stockholders. Therefore, stockholders may not have the opportunity to make a repurchase request prior to any potential termination of the Company’s share repurchase program.

Distributions Declared

Distributions declared (1) accrued daily to stockholders of record as of the close of business on each day, (2) were payable in cumulative amounts on or before the third day of each calendar month with respect to the prior month and (3) were calculated at a rate of $0.001964 per share per day during the three months ended March 31, 2017 and 2016.

Distributions declared for the three months ended March 31, 2017 and 2016 were $13,447,122 and $13,649,330, all of which were attributable to cash distributions.

As of March 31, 2017 and December 31, 2016, $4,627,865 and $4,625,355 distributions declared were payable.

Distributions Paid

For the three months ended March 31, 2017 and 2016, the Company paid cash distributions of $13,444,612 and $13,669,663, which related to distributions declared for each day in the period from December 1, 2016 through February 28, 2017 and December 1, 2015 through February 29, 2016, respectively. All such distributions were paid in cash.

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Earnings (Loss) Per Share

3 Months Ended

Mar. 31, 2017

Earnings Per Share [Abstract]

Earnings (Loss) Per Share

Earnings (Loss) Per Share

The following table presents a reconciliation of net loss attributable to common stockholders and shares used in calculating basic and diluted earnings (loss) per share for the three months ended March 31, 2017 and 2016:

	Three Months Ended March 31,
	2017			2016
Net loss attributable to the Company	$	(5,644,875	)	$	(3,618,142	)
Less: dividends declared on participating securities	2,099			45,505
Net loss attributable to common stockholders	(5,646,974		)	(3,663,647		)
Weighted average common shares outstanding — basic and diluted	76,066,450			76,350,555
Loss per common share — basic and diluted	$	(0.07	)	$	(0.05	)

The Company excluded all unvested restricted common shares outstanding issued to the Advisor and the Company’s independent directors from the calculation of diluted loss per common share as the effect would have been antidilutive.

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Related Party Arrangements

3 Months Ended

Mar. 31, 2017

Related Party Transactions [Abstract]

Related Party Arrangements

Related Party Arrangements

The Company has entered into the Advisory Agreement with the Advisor. Pursuant to the Advisory Agreement, the Company is obligated to pay the Advisor specified fees upon the provision of certain services related to the investment of funds in real estate and real estate-related investments, the management of the Company’s investments and for other services (including, but not limited to, the disposition of investments). Subject to the limitations described below, the Company is also obligated to reimburse the Advisor and its affiliates for organization and offering costs incurred by the Advisor and its affiliates on behalf of the Company, and the Company is obligated to reimburse the Advisor and its affiliates for acquisition and origination expenses and certain operating expenses incurred on behalf of the Company or incurred in connection with providing services to the Company.

Amounts attributable to the Advisor and its affiliates incurred for the three months ended March 31, 2017 and 2016 and amounts that are payable (prepaid) to the Advisor and its affiliates as of March 31, 2017 and December 31, 2016 are as follows:

	Incurred For the Three Months Ended March 31,				Payable (Prepaid) as of
	2017		2016		March 31, 2017			December 31, 2016
Consolidated Statements of Operations:
Expensed
Investment management fees(1)	$	3,581,155	$	3,501,124	$	38,717		$	1,185,001
Property management
Fees(1)	1,606,536		1,571,982		537,572			534,056
Reimbursement of onsite personnel(2)	4,831,469		4,564,368		1,015,869			805,274
Other fees(1)	434,332		449,317		51,597			54,679
Other fees - property operations(2)	46,836		—		—			—
Other fees - G&A(3)	40,581		—		—			—
Other operating expenses(3)	434,878		346,719		227,517			184,954
Consolidated Balance Sheets:
Capitalized
Construction management
Fees(4)	197,879		245,033		8,645			16,431
Reimbursement of labor costs(4)	65,471		83,050		7,665			7,171
Prepaid insurance deductible account(5)	62,092		37,245		(62,093		)	(124,185		)
	$	11,301,229	$	10,798,838	$	1,825,489		$	2,663,381

________________

(1) Included in fees to affiliates in the accompanying consolidated statements of operations.

(2) Included in operating, maintenance and management in the accompanying consolidated statements of operations.

(3) Included in general and administrative expenses in the accompanying consolidated statements of operations.

(4) Included in building and improvements in the accompanying consolidated balance sheets.

(5) Included in other assets in the accompanying consolidated balance sheets upon payment. The amortization of the prepaid insurance deductible account is included in general and administrative expenses in the accompanying consolidated statements of operations.

Investment Management Fee

The Company pays the Advisor a monthly investment management fee equal to one-twelfth of 0.80% of (1) the cost of real properties and real estate-related assets acquired directly by the Company or (2) the Company’s allocable cost of each real property or real estate-related asset acquired through a joint venture. Such fee is calculated including acquisition fees, acquisition expenses and any debt attributable to such investments, or the Company’s proportionate share thereof in the case of investments made through joint ventures. The cost of real properties and real estate-related assets that have been sold by the Company during the applicable month is excluded from the fee.

Acquisition Fees and Expenses

The Company pays the Advisor an acquisition fee equal to 2.0% of (1) the cost of investment, as defined in the Advisory Agreement, in connection with the acquisition or origination of any type of real property or real estate-related asset acquired directly by the Company or (2) the Company’s allocable portion of the purchase price in connection with the acquisition or origination of any type of real property or real estate-related asset acquired through a joint venture, including any acquisition and origination expenses and any debt attributable to such investments.

In addition to acquisition fees, the Company reimburses the Advisor for amounts directly incurred by the Advisor or its affiliates, including personnel-related costs for acquisition due diligence, legal and non-recurring management services, and amounts the Advisor pays to third parties in connection with the selection, acquisition or development of a property or acquisition of real estate-related assets, whether or not the Company ultimately acquires the property or the real estate-related assets.

The Charter limits the Company’s ability to pay acquisition fees if the total of all acquisition fees and expenses relating to the purchase would exceed 6.0% of the contract purchase price. Under the Charter, a majority of the Company’s board of directors, including a majority of the independent directors, is required to approve any acquisition fees (or portion thereof) that would cause the total of all acquisition fees and expenses relating to an acquisition to exceed 6.0% of the contract purchase price. In connection with the purchase of securities, the acquisition fee may be paid to an affiliate of the Advisor that is registered as a FINRA member broker-dealer if applicable FINRA rules would prohibit the payment of the acquisition fee to a firm that is not a registered broker-dealer.

Property Management Fees and Expenses

The Company has entered into Property Management Agreements with Steadfast Management Company, Inc., an affiliate of the Sponsor (the “Property Manager”), in connection with the acquisition of each of the Company’s properties (other than EBT Lofts, Library Lofts and Stuart Hall Lofts, which are managed by an unaffiliated third-party management company). The property management fee payable with respect to each property under the Property Management Agreements (each a “Property Management Agreement”) ranges from 2.50% to 3.75% of the annual gross revenue collected, which is usual and customary for comparable property management services rendered to similar properties in similar geographic markets, as determined by the Advisor and approved by a majority of the members of the Company’s board of directors, including a majority of the independent directors. The Property Manager also receives an oversight fee of 1% of gross revenues at certain of the properties at which it does not serve as a property manager. Generally, each Property Management Agreement has an initial one year term and will continue thereafter on a month-to-month basis unless either party gives a 60 day prior notice of its desire to terminate the Property Management Agreement, provided that the Company may terminate the Property Management Agreement at any time upon a determination of gross negligence, willful misconduct or bad acts of the Property Manager or its employees or upon an uncured breach of the Property Management Agreement upon 30 days prior written notice to the Property Manager.

In addition to the property management fee, the Property Management Agreements also specify certain other fees payable to the Property Manager or its affiliates, including fees for benefit administration, information technology infrastructure, licenses, and support and training services. The Company also reimburses the Property Manager for the salaries and related benefits of on-site property management employees.

Construction Management

The Company has entered into Construction Management Agreements with Pacific Coast Land and Construction, Inc., an affiliate of the Sponsor (the “Construction Manager”), in connection with the planned capital improvements and renovation for certain of the Company’s properties. The construction management fee payable with respect to each property under the Construction Management Agreements (each a “Construction Management Agreement”) ranges from 5.0% to 12.0% of the costs of the improvements for which the Construction Manager has planning and oversight authority. Generally, each Construction Management Agreement has a term equal to the planned renovation timeline unless either party gives a 30 day prior notice of its desire to terminate the Construction Management Agreement. Construction management fees are capitalized to the respective real estate properties in the period in which they are incurred, as such costs relate to capital improvements and renovations for units taken out of service while they undergo the planned renovation.

The Company may also reimburse the Construction Manager for the salaries and related benefits of certain of its employees for time spent working on capital improvements and renovations at its properties.

Prepaid Insurance Deductible Account

The Company deposits amounts with an affiliate of the Sponsor to fund a prepaid insurance deductible account to cover the cost of required insurance deductibles across all properties of the Company and other affiliated entities. Upon filing a major claim, proceeds from the insurance deductible account may be used by the Company or another affiliate of the Sponsor.

Other Operating Expense Reimbursement

In addition to the various fees paid to the Advisor, the Company is obligated to pay directly or reimburse all expenses incurred by the Advisor in providing services to the Company, including the Company’s allocable share of the Advisor’s overhead, such as rent, employee costs, utilities and information technology costs. The Company will not reimburse the Advisor for employee costs in connection with services for which the Advisor or its affiliates receive acquisition fees or disposition fees or for the salaries the Advisor pays to the Company’s executive officers.

The Charter limits the Company’s total operating expenses during any four fiscal quarters to the greater of 2% of the Company’s average invested assets or 25% of the Company’s net income for the same period (the “2%/25% Limitation”). The Company may reimburse the Advisor, at the end of each fiscal quarter, for operating expenses incurred by the Advisor; provided, however, that the Company shall not reimburse the Advisor at the end of any fiscal quarter for operating expenses that exceed the 2%/25% Limitation unless the independent directors have determined that such excess expenses were justified based on unusual and non-recurring factors. The Advisor must reimburse the Company for the amount by which the Company’s operating expenses for the preceding four fiscal quarters then ended exceed the 2%/25% Limitation unless the independent directors have determined that such excess expenses were justified. For purposes of determining the 2%/25% Limitation amount, “average invested assets” means the average monthly book value of the Company’s assets invested directly or indirectly in equity interests and loans secured by real estate during the 12-month period before deducting depreciation, bad debts or other non-cash reserves. “Total operating expenses” means all expenses paid or incurred by the Company that are in any way related to the Company’s operation, including the Company’s allocable share of Advisor overhead and investment management fees, but excluding (a) the expenses of raising capital such as organization and offering expenses, legal, audit, accounting, underwriting, brokerage, listing, registration and other fees, printing and other such expenses and taxes incurred in connection with the issuance, distribution, transfer, listing and registration of shares of the Company’s common stock; (b) interest payments; (c) taxes; (d) non-cash expenditures such as depreciation, amortization and bad debt reserves; (e) reasonable incentive fees based on the gain in the sale of the Company’s assets; (f) acquisition fees and acquisition expenses (including expenses relating to potential acquisitions that the Company does not close); (g) real estate commissions on the resale of investments; and (h) other expenses connected with the acquisition, disposition, management and ownership of investments (including the costs of foreclosure, insurance premiums, legal services, maintenance, repair and improvement of real property).

At March 31, 2017, the Company’s allocable share of the Advisor’s overhead expenses did not exceed the 2%/25% Limitation test.

Disposition Fee

The Company will pay the Advisor a disposition fee in connection with a sale of a property or real estate-related asset and in the event of the sale of the entire Company (a “Final Liquidity Event”), in either case when the Advisor or its affiliates provides a substantial amount of services as determined by a majority of the Company’s independent directors. With respect to a sale of a property or real estate-related asset, the Company will pay the Advisor a disposition fee equal to 1.5% of the contract sales price of the investment sold. With respect to a Final Liquidity Event, the Company will pay the Advisor a disposition fee equal to (i) 0.5% of the total consideration paid in a Final Liquidity Event if the price per share paid to stockholders is less than or equal to $9.00; (ii) 0.75% of the total consideration paid in a Final Liquidity Event if the price per share paid to stockholders is between $9.01 and $10.24; (iii) 1.00% of the total consideration paid in a Final Liquidity Event if the price per share paid to stockholders is between $10.25 and $11.24; (iv) 1.25% of the total consideration paid in a Final Liquidity Event if the price per share paid to stockholders is between $11.25 and $12.00; and (v) 1.50% of the total consideration paid in a Final Liquidity Event if the price per share paid to stockholders is greater than or equal to $12.01. To the extent the disposition fee is paid upon the sale of any assets other than real property, it will be included as an operating expense for purposes of the 2%/25% Limitation. In connection with the sale of securities, the disposition fee may be paid to an affiliate of the Advisor that is registered as a FINRA member broker-dealer if applicable FINRA rules would prohibit the payment of the disposition fee to a firm that is not a registered broker-dealer. The Charter limits the maximum amount of the disposition fees payable to the Advisor for the sale of any real property to the lesser of one-half of the brokerage commission paid or 3% of the contract sales price, but in no event shall the total real estate commissions paid, including any disposition fees payable to the Advisor, exceed 6% of the contract sales price.

Restricted Stock Agreement

On June 11, 2014, the Company entered into a restricted stock agreement with the Advisor whereby the Company issued to the Advisor 488,281.25 restricted shares of the Company’s common stock at a fair market value of $10.24 per share in satisfaction of certain deferred fees due to the Advisor in the aggregate amount of $5,000,000. Pursuant to the terms of the restricted stock agreement, the shares of restricted stock vested and became non-forfeitable 50% at December 31, 2015 and 50% at December 31, 2016.

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Incentive Award Plan and Independent Director Compensation

3 Months Ended

Mar. 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Incentive Award Plan and Independent Director Compensation

Incentive Award Plan and Independent Director Compensation

The Company has adopted an incentive plan (the “Incentive Award Plan”) that provides for the grant of equity awards to its employees, directors and consultants and those of the Company’s affiliates. The Incentive Award Plan authorizes the grant of non-qualified and incentive stock options, restricted stock awards, restricted stock units, stock appreciation rights, dividend equivalents and other stock-based awards or cash-based awards. No awards have been granted under the Incentive Award Plan as of March 31, 2017 and December 31, 2016, except those awards granted to the independent directors as described below.

Under the Company’s independent directors’ compensation plan, which is a sub-plan of the Incentive Award Plan, each of the Company’s then independent directors was entitled to receive 5,000 shares of restricted common stock in connection with the initial meeting of the Company’s full board of directors and at the initial election of a new independent director. The Company’s initial board of directors, and each of the independent directors, agreed to delay the initial grant of restricted stock until the Company raised $2,000,000 in gross offering proceeds in the Private Offering. In addition, on the date following an independent director’s re-election to the Company’s board of directors, he or she receives 2,500 shares of restricted common stock. One-fourth of the shares of restricted common stock generally vest and become non-forfeitable upon issuance and the remaining portion will vest in three equal annual installments beginning on the date of grant and ending on the third anniversary of the date of grant; provided, however, that the restricted stock will become fully vested and become non-forfeitable on the earlier to occur of (1) the termination of the independent director’s service as a director due to his or her death or disability, or (2) a change in control of the Company and as otherwise provided in the Incentive Award Plan. On August 9, 2016, the Company granted 2,500 shares of restricted common stock to each of its three independent directors upon their re-election to the Company’s board of directors at the 2016 annual meeting of stockholders. The Company recorded stock-based compensation expense of $15,030 and $12,864 for the three months ended March 31, 2017 and 2016, respectively.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Economic Dependency

The Company is dependent on the Advisor and its affiliates for certain services that are essential to the Company, including the identification, evaluation, negotiation, purchase, and disposition of real estate and real estate-related investments; management of the daily operations of the Company’s real estate and real estate-related investment portfolio; and other general and administrative responsibilities. In the event that these companies are unable to provide the respective services, the Company will be required to obtain such services from other sources.

Concentration of Credit Risk

The geographic concentration of the Company’s portfolio makes it particularly susceptible to adverse economic developments in the Houston, Texas, Chicago, Illinois and Austin, Texas apartment markets. Any adverse economic or real estate developments in these markets, such as business layoffs or downsizing, relocations of businesses, increased competition from other apartment communities, decrease in demand for apartments or any other changes, could adversely affect the Company’s operating results and its ability to make distributions to stockholders.

Environmental

As an owner of real estate, the Company is subject to various environmental laws of federal, state and local governments. The Company is not aware of any environmental liability that could have a material adverse effect on its financial condition or results of operations. However, changes in applicable environmental laws and regulations, the uses and conditions of properties in the vicinity of the Company’s properties, the activities of its tenants and other environmental conditions of which the Company is unaware with respect to the properties could result in future environmental liabilities.

Legal Matters

From time to time, the Company is subject, or party, to legal proceedings that arise in the ordinary course of its business. Management is not aware of any legal proceedings of which the outcome is reasonably likely to have a material adverse effect on the Company’s results of operations or financial condition nor is the Company aware of any such legal proceedings contemplated by government agencies.

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Derivative Financial Instruments

3 Months Ended

Mar. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

The Company uses interest rate derivatives with the objective of managing exposure to interest rate movements thereby minimizing the effect of interest rate changes and the effect they could have on future cash flows. Interest rate cap agreements are used to accomplish this objective. The following table provides the terms of the Company’s interest rate derivative instruments that were in effect at March 31, 2017 and December 31, 2016:

March 31, 2017
Type	Maturity Date Range	Based on	Number of Instruments	Notional Amount		Variable Rate		Weighted Average Rate Cap		Fair Value
Interest rate cap	4/1/2017 - 10/1/2019	One-Month LIBOR	43	$	973,400,000	0.98	%	2.75	%	$	298,888

December 31, 2016
Type	Maturity Date Range	Based on	Number of Instruments	Notional Amount		Variable Rate		Weighted Average Rate Cap		Fair Value
Interest rate cap	4/1/2017 - 10/1/2019	One-Month LIBOR	43	$	973,400,000	0.77	%	2.70	%	$	618,841

The interest rate cap agreements are not designated as cash flow hedges. Accordingly, the Company records any changes in the fair value of the interest rate cap agreements as interest expense. The change in the fair value of the interest rate cap agreements for the three months ended March 31, 2017 and 2016 resulted in an unrealized loss of $319,953 and $232,712, respectively, which is included in interest expense in the accompanying consolidated statements of operations. The fair value of interest rate cap agreements of $298,888 and $618,841 are included in other assets on the accompanying consolidated balance sheets.

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Subsequent Events

3 Months Ended

Mar. 31, 2017

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Distributions Paid

On April 3, 2017, the Company paid distributions of $4,627,865, which related to distributions declared for each day in the period from March 1, 2017 through March 31, 2017. All such distributions were paid in cash.

On May 1, 2017, the Company paid distributions of $4,477,560, which related to distributions declared for each day in the period from April 1, 2017 through April 30, 2017. All such distributions were paid in cash.

Redemption

On April 28, 2017, the Company redeemed 180,226 shares of its common stock for a total redemption value of $2,000,000, or $11.10 per share, pursuant to the Company’s share repurchase program.

Distributions Declared

On May 9, 2017, the Company’s board of directors approved and authorized a daily distribution to stockholders of record as of the close of business on each day of the period commencing on July 1, 2017 and ending on September 30, 2017. The distributions will be equal to $0.001964 per share of the Company’s common stock. The distributions for each record date in July 2017, August 2017 and September 2017 will be paid in August 2017, September 2017 and October 2017, respectively. The distributions will be payable to stockholders from legally available funds therefor.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2017

Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation and Basis of Presentation

The consolidated financial statements include the accounts of the Company, the consolidated variable interest entity (“VIE”) that the Company controls and of which the Company is the primary beneficiary, and the Operating Partnership’s subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation. The financial statements of the Company’s subsidiaries are prepared using accounting policies consistent with those of the Company.

Basis of Presentation

The accompanying unaudited consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board (“FASB”), Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments that are of a normal and recurring nature and necessary for a fair and consistent presentation of the results of such periods. Operating results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. The unaudited consolidated financial statements herein should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.

Use of Estimates

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates.

Short-term Investments

Short-term Investments

Short-term investments consist of any highly-liquid securities that have an original maturity of less than one year but greater than three months at the time of purchase.

Fair Value Measurements

Fair Value Measurements

Under GAAP, the Company is required to measure certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other assets and liabilities at fair value on a non-recurring basis (e.g., carrying value of impaired real estate loans receivable and long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories:

• Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities;

• Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and

• Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both significant to the fair value measurement and unobservable.

When available, the Company utilizes quoted market prices from an independent third-party source to determine fair value and will classify such items in Level 1 or Level 2. In instances where the market is not active, regardless of the availability of a nonbinding quoted market price, observable inputs might not be relevant and could require the Company to make a significant adjustment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent third party may rely more on models with inputs based on information available only to that independent third party. When the Company determines the market for a financial instrument owned by the Company to be illiquid or when market transactions for similar instruments do not appear orderly, the Company uses several valuation sources (including internal valuations, discounted cash flow analysis and quoted market prices) and will establish a fair value by assigning weights to the various valuation sources.

The following describes the valuation methodologies used by the Company to measure fair value, including an indication of the level in the fair value hierarchy in which each asset or liability is generally classified.

Interest rate cap agreements — The Company has entered into certain interest rate cap agreements. These derivatives did not qualify as fair value hedges. Fair value was based on a model-driven valuation using the associated variable rate curve and an implied market volatility, both of which were observable at commonly quoted intervals for the full term of the interest rate cap agreements. Therefore, the Company’s interest rate cap agreements were classified within Level 2 of the fair value hierarchy and are included in other assets in the accompanying consolidated balance sheets.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The accompanying consolidated balance sheets include the following financial instruments: cash and cash equivalents, restricted cash, short-term investments, rents and other receivables, accounts payable and accrued liabilities, distributions payable, due to affiliates and notes payable.

The Company considers the carrying value of cash and cash equivalents, restricted cash, rents and other receivables, accounts payable and accrued liabilities and distributions payable to approximate the fair value of these financial instruments based on the short duration between origination of the instruments and their expected realization. The Company considers the carrying value of short-term investments to approximate fair value as it was recorded at amortized cost. The fair value of amounts due to affiliates is not determinable due to the related party nature of such amounts.

The fair value of the notes payable is estimated using a discounted cash flow analysis using borrowing rates available to the Company for debt instruments with similar terms and maturities.

Distribution Policy

Distribution Policy

The Company has elected to be taxed as a REIT and to operate as a REIT beginning with its taxable year ending December 31, 2010. To maintain its qualification as a REIT, the Company intends to make distributions each taxable year equal to at least 90% of its REIT taxable income (which is determined without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP).

Distributions to stockholders are determined by the board of directors of the Company and are dependent upon a number of factors relating to the Company, including funds available for the payment of distributions, financial condition, the timing of property acquisitions, capital expenditure requirements and annual distribution requirements in order for the Company to qualify as a REIT under the Internal Revenue Code.

Per Share Data

Per Share Data

Basic earnings (loss) per share attributable to common stockholders for all periods presented are computed by dividing net income (loss) by the weighted average number of shares of the Company’s common stock outstanding during the period. Diluted earnings (loss) per share is computed based on the weighted average number of shares of the Company’s common stock and all potentially dilutive securities, if any. Distributions declared per common share assume each share was issued and outstanding each day during the period. Nonvested shares of the Company’s restricted common stock give rise to potentially dilutive shares of the Company’s common stock, but such shares were excluded from the computation of diluted earnings (loss) per share because such shares were anti-dilutive during the period.

In accordance with FASB ASC Topic 260-10-45, Earnings Per Share, the Company uses the two-class method to calculate earnings (loss) per share. Basic earnings (loss) per share is calculated based on dividends declared and the rights of common shares and participating securities in any undistributed earnings, which represents net income (loss) remaining after deduction of dividends declared during the period. The undistributed earnings (loss) are allocated to all outstanding common shares based on the relative percentage of each class of shares. The Company does not have any participating securities outstanding other than the shares of common stock and the unvested restricted common stock during the periods presented. Earnings (loss) attributable to the unvested restricted common stock are deducted from earnings (loss) in the computation of per share amounts where applicable.

Segment Disclosure

Segment Disclosure

The Company has determined that it has one reportable segment with activities related to investing in multifamily properties. The Company’s investments in real estate are in different geographic regions, and management evaluates operating performance on an individual asset level. However, as each of the Company’s assets has similar economic characteristics, tenants and products and services, its assets have been aggregated into one reportable segment.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606). The new guidance requires an entity to recognize the revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The new guidance supersedes the revenue requirements in Revenue Recognition (Topic 605) and most industry-specific guidance throughout the Industry Topics of the Codification. The new guidance does not apply to lease contracts within the scope of Leases (Topic 840). In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606), which delayed the effective date of the new guidance by one year, which will result in the new guidance being effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and is to be applied retrospectively. Early adoption is permitted, but can be no earlier than the original public entity effective date of fiscal years, and interim periods within those years, beginning after December 15, 2016. The Company anticipates selecting the modified retrospective transition method with a cumulative effect recognized as of the date of adoption and will adopt the new standard effective January 1, 2018. The Company is continuing to evaluate the standard; however, the Company does not expect its adoption to have a material impact on the consolidated financial statements, as rental income from leasing arrangements is specifically excluded from the standard.

In February 2016, the FASB issued ASU 2016-02, Leases, amending the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. The new standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The guidance will be effective in the first quarter of 2019 and allows for early adoption. The Company is continuing to evaluate the standard; however, the Company does not expect its adoption to have a material impact on the consolidated financial statements, as lessor accounting for leases will be substantially equivalent to existing guidance.

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718), Improvements toEmployee Share-Based Payment Accounting, that simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. The guidance is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those years. The Company did not experience a material impact from adopting this new guidance.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force), that clarifies how certain cash receipts and cash payments should be classified on the statement of cash flows. This ASU addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The guidance is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those years. Early adoption is permitted. The Company did not experience a material impact from adopting this new guidance.

In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU No. 2016-18”). ASU No. 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, restricted cash and restricted cash equivalents. Therefore, amounts generally described as restricted cash should be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. ASU No. 2016-18 is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements and related disclosures.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the definition of business, that clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of businesses. This ASU provides a screen to determine when a set is not a business. If the screen is not met, it (1) requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) removes the evaluation of whether a market participant could replace the missing elements. The guidance is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those years. Early adoption is permitted. Upon adoption of this new guidance during the three months ended March 31, 2017, the Company did not experience a material impact.

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Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2017

Accounting Policies [Abstract]

Summary of Assets Required to be Measured at Fair Value on a Recurring Basis

The following table reflects the Company’s assets required to be measured at fair value on a recurring basis on the consolidated balance sheets:

	March 31, 2017
	Fair Value Measurements Using
	Level 1		Level 2		Level 3
Assets:
Interest rate cap agreements	$	—	$	298,888	$	—

	December 31, 2016
	Fair Value Measurements Using
	Level 1		Level 2		Level 3
Assets:
Interest rate cap agreements	$	—	$	618,841	$	—

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Real Estate (Tables)

3 Months Ended

Mar. 31, 2017

Real Estate [Abstract]

Schedule of Accumulated Depreciation and Amortization Related to the Consolidated Real Estate Properties and Related Intangibles

As of March 31, 2017 and December 31, 2016, accumulated depreciation and amortization related to the Company’s consolidated real estate properties and related intangibles were as follows:

	March 31, 2017
	Assets
	Land		Building and Improvements			Other Intangible Assets			Total Real Estate
Investments in real estate	$	174,102,422	$	1,521,600,455		$	2,644,263		$	1,698,347,140
Less: Accumulated depreciation and amortization	—		(250,111,351		)	(584,323		)	(250,695,674		)
Net investments in real estate and related lease intangibles	$	174,102,422	$	1,271,489,104		$	2,059,940		$	1,447,651,466

	December 31, 2016
	Assets
	Land		Building and Improvements			Other Intangible Assets			Total Real Estate
Investments in real estate	$	174,102,422	$	1,517,532,273		$	2,644,263		$	1,694,278,958
Less: Accumulated depreciation and amortization	—		(232,198,052		)	(546,031		)	(232,744,083		)
Net investments in real estate and related lease intangibles	$	174,102,422	$	1,285,334,221		$	2,098,232		$	1,461,534,875

Schedule of Future Amortization of Acquired Other Intangible Assets

The future amortization of the Company’s acquired other intangible assets as of March 31, 2017 and thereafter is as follows:

April 1 through December 31, 2017	$	114,876
2018	153,168
2019	153,168
2020	153,168
2021	153,168
Thereafter	1,332,392
	$	2,059,940

Schedule of Future Minimum Rental Receipts from Properties under Non-cancelable Operating Leases Attributable to Commercial Office Tenants

The future minimum rental receipts from the Company’s properties under non-cancelable operating leases attributable to commercial office tenants as of March 31, 2017 and thereafter is as follows:

April 1 through December 31, 2017	$	191,526
2018	259,143
2019	180,858
2020	74,313
2021	76,535
Thereafter	264,345
	$	1,046,720

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Other Assets (Tables)

3 Months Ended

Mar. 31, 2017

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Deferred Financing Costs and Other Assets, Net of Accumulated Amortization

As of March 31, 2017 and December 31, 2016, other assets consisted of:

	March 31, 2017		December 31, 2016
Prepaid expenses	$	1,929,301	$	3,041,353
Interest rate cap agreements (Note 11)	298,888		618,841
Other deposits	1,122,853		1,126,568
Other assets	$	3,351,042	$	4,786,762

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Debt (Tables)

3 Months Ended

Mar. 31, 2017

Debt Disclosure [Abstract]

Summary of Notes Payable Secured by Real Property

The following is a summary of mortgage notes payable secured by real property as of March 31, 2017 and     December 31, 2016:

	March 31, 2017
			Interest Rate Range				Weighted Average Interest Rate
Type	Number of Instruments	Maturity Date Range	Minimum		Maximum				Principal Outstanding
Mortgage notes payable - fixed	37	10/1/2017 - 10/1/2056	3.19	%	5.94	%	4.06	%	$	469,122,776
Mortgage notes payable - variable(1)	21	8/31/2017 - 1/1/2026	1-Mo LIBOR + 1.65%		1-Mo LIBOR + 2.65%		3.26	%	517,774,385
Total mortgage notes payable	58						3.63	%	986,897,161
Premium, net(2)									1,899,980
Deferred financing costs, net(3)									(6,030,001		)
Total mortgage notes payable, net									$	982,767,140

	December 31, 2016
			Interest Rate Range				Weighted Average Interest Rate
Type	Number of Instruments	Maturity Date Range	Minimum		Maximum				Principal Outstanding
Mortgage notes payable - fixed	37	10/1/2017 - 10/1/2056	3.19	%	5.94	%	4.06	%	$	471,344,145
Mortgage notes payable - variable(1)	21	8/31/2017 - 1/1/2026	1-Mo LIBOR + 1.65%		1-Mo LIBOR + 2.65%		3.05	%	517,885,675
Total mortgage notes payable	58						3.52	%	989,229,820
Premium, net(2)									2,208,619
Deferred financing costs, net(3)									(6,358,285		)
Total mortgage notes payable, net									$	985,080,154

_______________

(1) See Note 11 for a discussion of the interest rate cap agreements used to manage the exposure to interest rate movement on the Company’s variable rate loans.

(2) The following table summarizes the debt premiums as of March 31, 2017, including the unamortized portion included in the principal balance as well as amounts amortized as an offset to interest expense in the accompanying consolidated statements of operations:

Unamortized Portion of Net Debt Premium as of March 31, 2017		Amortization of Net Debt Premium During the Three Months Ended March 31,
		2017		2016
$	1,899,980	$	308,639	$	308,698

(3) The following table summarizes the deferred financing costs, net related to mortgage notes payable as of March 31, 2017 and December 31, 2016:

	March 31, 2017			December 31, 2016
Deferred financing costs	$	10,104,244		$	10,104,244
Less: accumulated amortization	(4,074,243		)	(3,745,959		)
Deferred financing costs, net	$	6,030,001		$	6,358,285

Summary of Debt Premiums and Discounts

The following table summarizes the debt premiums as of March 31, 2017, including the unamortized portion included in the principal balance as well as amounts amortized as an offset to interest expense in the accompanying consolidated statements of operations:

Unamortized Portion of Net Debt Premium as of March 31, 2017		Amortization of Net Debt Premium During the Three Months Ended March 31,
		2017		2016
$	1,899,980	$	308,639	$	308,698

Summary of Deferred Financing Costs

The following table summarizes the deferred financing costs, net related to mortgage notes payable as of March 31, 2017 and December 31, 2016:

	March 31, 2017			December 31, 2016
Deferred financing costs	$	10,104,244		$	10,104,244
Less: accumulated amortization	(4,074,243		)	(3,745,959		)
Deferred financing costs, net	$	6,030,001		$	6,358,285

Schedule of Collateralized Property

As of March 31, 2017 and December 31, 2016, the advances obtained under the credit facility on July 29, 2016 are summarized in the following table:

	Amount of Advance as of
Collateralized Property(1)	March 31, 2017			December 31, 2016
Ashley Oaks Apartment Homes	$	24,867,500		$	24,867,500
Trails at Buda Ranch	21,025,000			21,025,000
Deer Valley Apartments	22,982,500			22,982,500
Carrington Park at Huffmeister	20,430,500			20,430,500
Carrington Place	27,535,500			27,535,500
Carrington at Champion Forest	25,121,250			25,121,250
Audubon Park Apartments	16,602,500			16,602,500
Oak Crossing	17,980,000			17,980,000
Meritage at Steiner Ranch	58,580,000			58,580,000
	$	235,124,750		$	235,124,750
Deferred financing costs, net on credit facility(2)	(2,346,212		)	(2,488,624		)
Credit facility, net	$	232,778,538		$	232,636,126

___________

(1) Each property is pledged as collateral for repayment of all amounts advanced under the credit facility.

(2) Accumulated amortization related to deferred financing costs for the credit facility as of March 31, 2017 and December 31, 2016, was $575,934 and $433,522, respectively.

Summary of Aggregate Maturities

The following is a summary of the Company’s aggregate maturities as of March 31, 2017:

					Maturities During the Years Ending December 31,
Contractual Obligation	Total		Remainder of 2017		2018		2019		2020		2021		Thereafter
Principal payments on outstanding debt obligations(1)	$	1,222,021,911	$	47,836,071	$	75,880,559	$	101,893,298	$	87,550,294	$	278,217,869	$	630,643,820

________________

(1) Projected principal payments on outstanding debt obligations are based on the terms of the notes payable agreements. Amounts exclude the amortization of the deferred financing costs and debt premiums associated with certain notes payable.

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Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2017

Equity [Abstract]

Schedule of Restricted Stock Issued to Independent Directors as Compensation

The issuance and vesting activity for the three months ended March 31, 2017 and for the year ended December 31, 2016 for the restricted stock issued to the Company’s independent directors as compensation for services in connection with their re-election to the board of directors at the Company’s annual meeting is as follows:

	For the Three Months Ended March 31, 2017	For the Year Ended December 31, 2016
Nonvested shares at the beginning of the period	11,875	11,250
Granted shares	—	7,500
Vested shares	—	(6,875	)
Nonvested shares at the end of the period	11,875	11,875

The weighted average fair value of restricted stock issued to the Company’s independent directors for the three months ended March 31, 2017 and for the year ended December 31, 2016 is as follows:

Grant Year	Weighted Average Fair Value
2016	$	11.44
2017	n/a

Schedule of Repurchase Prices Under Share Repurchase Plan

The purchase price for shares repurchased under the Company’s share repurchase program is as follows:

Share Purchase Anniversary	Repurchase Price on Repurchase Date(1)
Less than 1 year	No Repurchase Allowed
1 year	92.5% of Estimated Value per Share(2)
2 years	95.0% of Estimated Value per Share(2)
3 years	97.5% of Estimated Value per Share(2)
4 years	100.0% of Estimated Value per Share(2)
In the event of a stockholder’s death or disability(3)	Average Issue Price for Shares(4)

________________

(1) As adjusted for any stock dividends, combinations, splits, recapitalizations or any similar transaction with respect to the shares of common stock.

(2) For purposes of the share repurchase program, the “Estimated Value per Share” will equal the most recently determined estimated value per share determined by the Company’s board of directors.

(3) The required one year holding period to be eligible to redeem shares under the Company’s share repurchase program does not apply in the event of death or disability of a stockholder.

(4) The purchase price per share for shares redeemed upon the death or disability of a stockholder will be equal to the average issue price per share for all of the stockholder’s shares.

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Earnings (Loss) Per Share (Tables)

3 Months Ended

Mar. 31, 2017

Earnings Per Share [Abstract]

Schedule of Reconciliation of Net Loss Attributable to Common Stockholders and Shares used in Calculating Basic and Diluted Earnings (Loss) Per Share

The following table presents a reconciliation of net loss attributable to common stockholders and shares used in calculating basic and diluted earnings (loss) per share for the three months ended March 31, 2017 and 2016:

	Three Months Ended March 31,
	2017			2016
Net loss attributable to the Company	$	(5,644,875	)	$	(3,618,142	)
Less: dividends declared on participating securities	2,099			45,505
Net loss attributable to common stockholders	(5,646,974		)	(3,663,647		)
Weighted average common shares outstanding — basic and diluted	76,066,450			76,350,555
Loss per common share — basic and diluted	$	(0.07	)	$	(0.05	)

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Related Party Arrangements (Tables)

3 Months Ended

Mar. 31, 2017

Related Party Transactions [Abstract]

Schedule of Amounts Attributable to the Advisor and its Affiliates

Amounts attributable to the Advisor and its affiliates incurred for the three months ended March 31, 2017 and 2016 and amounts that are payable (prepaid) to the Advisor and its affiliates as of March 31, 2017 and December 31, 2016 are as follows:

	Incurred For the Three Months Ended March 31,				Payable (Prepaid) as of
	2017		2016		March 31, 2017			December 31, 2016
Consolidated Statements of Operations:
Expensed
Investment management fees(1)	$	3,581,155	$	3,501,124	$	38,717		$	1,185,001
Property management
Fees(1)	1,606,536		1,571,982		537,572			534,056
Reimbursement of onsite personnel(2)	4,831,469		4,564,368		1,015,869			805,274
Other fees(1)	434,332		449,317		51,597			54,679
Other fees - property operations(2)	46,836		—		—			—
Other fees - G&A(3)	40,581		—		—			—
Other operating expenses(3)	434,878		346,719		227,517			184,954
Consolidated Balance Sheets:
Capitalized
Construction management
Fees(4)	197,879		245,033		8,645			16,431
Reimbursement of labor costs(4)	65,471		83,050		7,665			7,171
Prepaid insurance deductible account(5)	62,092		37,245		(62,093		)	(124,185		)
	$	11,301,229	$	10,798,838	$	1,825,489		$	2,663,381

________________

(1) Included in fees to affiliates in the accompanying consolidated statements of operations.

(2) Included in operating, maintenance and management in the accompanying consolidated statements of operations.

(3) Included in general and administrative expenses in the accompanying consolidated statements of operations.

(4) Included in building and improvements in the accompanying consolidated balance sheets.

(5) Included in other assets in the accompanying consolidated balance sheets upon payment. The amortization of the prepaid insurance deductible account is included in general and administrative expenses in the accompanying consolidated statements of operations.

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Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Interest Rate Derivative Instruments

The following table provides the terms of the Company’s interest rate derivative instruments that were in effect at March 31, 2017 and December 31, 2016:

March 31, 2017
Type	Maturity Date Range	Based on	Number of Instruments	Notional Amount		Variable Rate		Weighted Average Rate Cap		Fair Value
Interest rate cap	4/1/2017 - 10/1/2019	One-Month LIBOR	43	$	973,400,000	0.98	%	2.75	%	$	298,888

December 31, 2016
Type	Maturity Date Range	Based on	Number of Instruments	Notional Amount		Variable Rate		Weighted Average Rate Cap		Fair Value
Interest rate cap	4/1/2017 - 10/1/2019	One-Month LIBOR	43	$	973,400,000	0.77	%	2.70	%	$	618,841

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Organization and Business - Narrative (Details)			3 Months Ended	12 Months Ended
	Jul. 10, 2009 USD ($) shares	Jun. 12, 2009 USD ($) $ / shares shares	Mar. 31, 2017 ft² apartment property shares	Dec. 31, 2009 shares	Dec. 31, 2016 shares
Common Stock [Member]
Class of Stock [Line Items]
Stock issued to advisor (in shares)			76,575,259		76,674,502
Convertible Stock [Member]
Class of Stock [Line Items]
Stock issued to advisor (in shares)			1,000		1,000
Residential Real Estate [Member]
Class of Stock [Line Items]
Number of multifamily real estate properties owned | property			65
Number of units in real estate property (in number of units or apartments) | apartment			16,709
Commercial Real Estate [Member]
Class of Stock [Line Items]
Net rentable area (in square feet) | ft²			25,973
Steadfast REIT Investments, LLC [Member] | Common Stock [Member]
Class of Stock [Line Items]
Issuance of common stock (in shares)		22,223		22,223
Share price (in dollars per share) | $ / shares		$ 9
Proceeds from issuance of common stock | $		$ 200,007
Steadfast Income Advisor, LLC [Member]
Class of Stock [Line Items]
Investment from advisor | $	$ 1,000
Steadfast Income Advisor, LLC [Member] | Convertible Stock [Member]
Class of Stock [Line Items]
Issuance of common stock (in shares)			1,000
Stock issued to advisor (in shares)	1,000

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Organization and Business - Narrative - Private Offering (Details) - Private Offering [Member] - USD ($)	3 Months Ended	9 Months Ended
	Mar. 31, 2017	Jul. 09, 2010	Oct. 13, 2009
Class of Stock [Line Items]
Value of shares in private offering			$ 94,000,000
Share price (in dollars per share)			$ 9.40
Issuance of common stock (in shares)		637,279
Proceeds from issuance of common stock	$ 2,000,000	$ 5,844,325

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Organization and Business - Narrative - Public Offering (Details) - USD ($)			3 Months Ended		9 Months Ended	41 Months Ended
	Sep. 10, 2012	Sep. 09, 2012	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Dec. 20, 2013	Feb. 15, 2017	Mar. 10, 2015	Jul. 12, 2012	Jul. 19, 2010	Jul. 23, 2009
Class of Stock [Line Items]
Common share, distribution rate per share per day, declared (in dollars per share)			$ 0.001964	$ 0.001964
Stock issued during period, dividend reinvestment plan (in shares)			4,073,759
Proceeds from issuance of common stock, dividend reinvestment plan			$ 39,580,847
Distribution Reinvestment Plan [Member]
Class of Stock [Line Items]
Share price (in dollars per share)	$ 9.73										$ 9.5
Common Stock [Member]
Class of Stock [Line Items]
Common share, distribution rate per share per day, declared (in dollars per share)	$ 0.001964	$ 0.001917	$ 0.001964		$ 0.001964
Common stock, distribution rate, percentage	7.00%
Common stock, estimated value, per share (in dollars per share)					$ 11.44		$ 11.65	$ 10.35
Common Stock [Member] | Primary Offering [Member]
Class of Stock [Line Items]
Common stock, capital shares reserved for future issuance (in shares)										150,000,000
Share price (in dollars per share)									$ 10.24	$ 10
Distributions reinvested, percentage of share price, distribution reinvestment plan	95.00%
Common Stock [Member] | IPO [Member]
Class of Stock [Line Items]
Common stock, capital shares reserved for future issuance, distribution reinvestment plan (in shares)										15,789,474
Share price, distribution reinvestment plan (in dollars per share)	$ 9.73									$ 9.5
Stock issued during period, shares, new issues (in shares)						73,608,337
Proceeds from issuance of common stock						$ 745,389,748
Common Stock [Member] | Distribution Reinvestment Plan [Member]
Class of Stock [Line Items]
Stock issued during period, dividend reinvestment plan (in shares)						1,588,289
Proceeds from issuance of common stock, dividend reinvestment plan						$ 15,397,232

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Summary of Significant Accounting Policies - Narrative - Short-term Investments (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Investment [Line Items]
Short-term investments	$ 30,000,000		$ 30,084,750
Tenant Reimbursements And Other	6,064,491	$ 5,736,273
Certificates of Deposit [Member]
Investment [Line Items]
Short-term investments	30,000,000		$ 30,000,000
Tenant Improvements And Other [Member]
Investment [Line Items]
Tenant Reimbursements And Other	$ 84,750	$ 0

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Summary of Significant Accounting Policies - Summary of Assets Required to be Measured at Fair Value on a Recurring Basis (Details) - Interest Rate Cap [Member] - Fair Value, Measurements, Recurring [Member] - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate cap agreements	$ 0	$ 0
Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate cap agreements	298,888	618,841
Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate cap agreements	$ 0	$ 0

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Summary of Significant Accounting Policies - Narrative - Fair Value of Financial Instruments (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgage notes payable, net	$ 982,767,140	$ 985,080,154
Estimate of Fair Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgage notes payable at fair value	1,219,644,512	1,197,015,105
Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgage notes payable, net	$ 1,215,545,678	$ 1,217,716,280

XML

Summary of Significant Accounting Policies - Narrative - Distribution Policy (Details) - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Accounting Policies [Abstract]
Common share, distribution rate per share per day, declared (in dollars per share)	$ 0.001964	$ 0.001964
Distributions declared per common share (in dollars per share)	$ 0.177	$ 0.178

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Summary of Significant Accounting Policies - Narrative - Segment Disclosure (Details)	3 Months Ended
	Mar. 31, 2017 segment
Accounting Policies [Abstract]
Number of reportable segments	1

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Real Estate - Narrative (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2017 USD ($) ft² apartment property customer	Mar. 31, 2016 USD ($) customer	Dec. 31, 2016 USD ($)
Real Estate Properties [Line Items]
Contract purchase price	$ 1,644,189,381
Average percentage of real estate portfolio occupied	93.60%		93.50%
Average monthly collected rent	$ 1,025		$ 1,026
Depreciation and amortization	$ 17,953,723	$ 16,947,268
Tenant [Member] | Customer Concentration Risk [Member]
Real Estate Properties [Line Items]
Number of major customers | customer	0	0
Accounts Payable and Accrued Liabilities [Member]
Real Estate Properties [Line Items]
Security deposit liability	$ 5,083,549		$ 5,047,792
Residential Real Estate [Member]
Real Estate Properties [Line Items]
Number of multifamily real estate properties owned | property	65
Number of units in real estate property (in number of units or apartments) | apartment	16,709
Percentage leased	95.80%
Operating leases, revenue, percentage	99.00%		99.00%
Residential Real Estate [Member] | Maximum [Member]
Real Estate Properties [Line Items]
Operating lease term	12 months
Commercial Real Estate [Member]
Real Estate Properties [Line Items]
Net rentable area (in square feet) | ft²	25,973
Operating leases, revenue, percentage	1.00%		1.00%
Commercial Real Estate [Member] | Minimum [Member]
Real Estate Properties [Line Items]
Operating lease term	2 years 2 months
Commercial Real Estate [Member] | Maximum [Member]
Real Estate Properties [Line Items]
Operating lease term	8 years 2 days
Building and Improvements [Member]
Real Estate Properties [Line Items]
Depreciation	$ 17,915,431	$ 16,908,976
Other Intangible Assets [Member]
Real Estate Properties [Line Items]
Amortization	$ 38,292	$ 38,292

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Real Estate - Schedule of Accumulated Depreciation and Amortization Related to the Consolidated Real Estate Properties and Related Intangibles (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items]
Investments in real estate	$ 1,698,347,140	$ 1,694,278,958
Less: Accumulated depreciation and amortization	(250,695,674)	(232,744,083)
Total real estate, net	1,447,651,466	1,461,534,875
Land [Member]
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items]
Investments in real estate	174,102,422	174,102,422
Less: Accumulated depreciation and amortization	0	0
Total real estate, net	174,102,422	174,102,422
Building and Improvements [Member]
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items]
Investments in real estate	1,521,600,455	1,517,532,273
Less: Accumulated depreciation and amortization	(250,111,351)	(232,198,052)
Total real estate, net	1,271,489,104	1,285,334,221
Other Intangible Assets [Member]
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items]
Investments in real estate	2,644,263	2,644,263
Less: Accumulated depreciation and amortization	(584,323)	(546,031)
Total real estate, net	$ 2,059,940	$ 2,098,232

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Real Estate - Schedule of Future Amortization of Acquired Other Intangible Assets (Details) - Other Intangible Assets [Member]	Mar. 31, 2017 USD ($)
Finite-Lived Intangible Assets [Line Items]
July 1 through December 31, 2016	$ 114,876
2017	153,168
2018	153,168
2019	153,168
2020	153,168
Thereafter	1,332,392
Future amortization of acquired other intangible assets	$ 2,059,940

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Real Estate - Schedule of Future Minimum Rental Receipts from Properties under Non-cancelable Operating Leases Attributable to Commercial Office Tenants (Details)	Mar. 31, 2017 USD ($)
Real Estate [Abstract]
April 1 through December 31, 2017	$ 191,526
2018	259,143
2019	180,858
2020	74,313
2021	76,535
Thereafter	264,345
Total future minimum rental receipts	$ 1,046,720

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Other Assets - Schedule of Deferred Financing Costs and Other Assets, Net of Accumulated Amortization (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid expenses	$ 1,929,301	$ 3,041,353
Interest rate caps	298,888	618,841
Deposits	1,122,853	1,126,568
Deferred financing costs and other assets, net	$ 3,351,042	$ 4,786,762

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Debt - Summary of Notes Payable Secured by Real Property (Details)	3 Months Ended
	Mar. 31, 2017 USD ($) instrument	Mar. 31, 2016	Dec. 31, 2016 USD ($) instrument
Debt Instrument [Line Items]
Mortgage notes payable	$ 982,767,140		$ 985,080,154
Total notes payable, net	$ 1,215,545,678		$ 1,217,716,280
Notes Payable to Banks [Member]
Debt Instrument [Line Items]
Number of Instruments | instrument	58		58
Weighted Average Interest Rate	3.63%		3.52%
Mortgage notes payable	$ 986,897,161		$ 989,229,820
Premium/discount, net	1,899,980		2,208,619
Deferred financing costs, net	(6,030,001)		(6,358,285)
Total notes payable, net	$ 982,767,140		$ 985,080,154
Notes Payable to Banks [Member] | Mortgage Notes Payable, Fixed Interest [Member]
Debt Instrument [Line Items]
Number of Instruments | instrument	37		37
Weighted Average Interest Rate	4.06%		4.06%
Mortgage notes payable	$ 469,122,776		$ 471,344,145
Notes Payable to Banks [Member] | Mortgage Notes Payable, Fixed Interest [Member] | Minimum [Member]
Debt Instrument [Line Items]
Interest Rate Range	3.19%		3.19%
Notes Payable to Banks [Member] | Mortgage Notes Payable, Fixed Interest [Member] | Maximum [Member]
Debt Instrument [Line Items]
Interest Rate Range	5.94%		5.94%
Notes Payable to Banks [Member] | Mortgage Notes Payable, Variable Interest [Member]
Debt Instrument [Line Items]
Number of Instruments | instrument	21		21
Weighted Average Interest Rate	3.26%		3.05%
Mortgage notes payable	$ 517,774,385		$ 517,885,675
Notes Payable to Banks [Member] | Mortgage Notes Payable, Variable Interest [Member] | Minimum [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.65%	1.65%
Notes Payable to Banks [Member] | Mortgage Notes Payable, Variable Interest [Member] | Maximum [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	2.65%	2.65%

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Debt - Summary of Debt Premiums and Discounts (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Debt Instrument [Line Items]
Amortization of debt premium (discount)	$ 308,639	$ 308,698
Notes Payable to Banks [Member]
Debt Instrument [Line Items]
Premium/discount, net	1,899,980		$ 2,208,619
Amortization of debt premium (discount)	$ 308,639	$ 308,698

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Debt - Summary of Deferred Financing Costs (Details) - Notes Payable to Banks [Member] - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Deferred financing costs	$ 10,104,244	$ 10,104,244
Less: accumulated amortization	(4,074,243)	(3,745,959)
Deferred financing costs, net	$ 6,030,001	$ 6,358,285

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Debt - Narrative (Details)			1 Months Ended	3 Months Ended
	Jul. 29, 2016 USD ($) subsidiary	Jun. 30, 2016 USD ($) subsidiary	Sep. 29, 2016 USD ($) subsidiary	Mar. 31, 2017 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2016 USD ($)
Debt Instrument [Line Items]
Credit facility, net				$ 232,778,538		$ 232,636,126
Interest expense				10,848,036	$ 10,072,744
Amortization of deferred financing costs				470,696	382,044
Amortization of debt premium (discount)				308,639	308,698
Unrealized loss on derivatives				319,953	232,712
Interest capitalized				0	25,904
Accounts Payable and Accrued Liabilities [Member]
Debt Instrument [Line Items]
Interest payable				3,548,031		$ 3,444,162
Interest Rate Cap [Member]
Debt Instrument [Line Items]
Unrealized loss on derivatives				319,953	232,712
Notes Payable to Banks [Member]
Debt Instrument [Line Items]
Number of Subsidiaries Involved as Borrowers on Debt | subsidiary	9	14	3
Amortization of debt premium (discount)				308,639	$ 308,698
Extinguishment of Debt, Amount		$ 283,313,677	$ 61,575,025
Notes Payable to Banks [Member] | Refinancing Transactions Loan Agreement [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount			$ 63,620,600	$ 358,002,000
Notes Payable to Banks [Member] | Refinancing Transactions Loan Agreement [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate		2.31%
Revolving Credit Facility [Member] | Refinanced PNC Bank Credit Facility [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	0.05%
Line of Credit Facility, Maximum Borrowing Capacity	$ 350,000,000
Payments for (Proceeds from) Loans and Leases	1,293,186
Fees and Commissions	$ 1,175,624
Minimum [Member] | Revolving Credit Facility [Member] | Refinanced PNC Bank Credit Facility [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.73%
Maximum [Member] | Revolving Credit Facility [Member] | Refinanced PNC Bank Credit Facility [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.93%

XML

Debt - Advances Obtained Under Credit Facility (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Total notes payable, net	$ 1,222,021,911
Total notes payable, net	1,215,545,678	$ 1,217,716,280
Revolving Credit Facility [Member] | Refinanced PNC Bank Credit Facility [Member]
Debt Instrument [Line Items]
Total notes payable, net	235,124,750	235,124,750
Deferred financing costs, net on credit facility	(2,346,212)	(2,488,624)
Total notes payable, net	232,778,538	232,636,126
Accumulated amortization of deferred financing costs	(575,934)	(433,522)
Revolving Credit Facility [Member] | Refinanced PNC Bank Credit Facility [Member] | Ashley Oak Apartments [Member]
Debt Instrument [Line Items]
Total notes payable, net	24,867,500	24,867,500
Revolving Credit Facility [Member] | Refinanced PNC Bank Credit Facility [Member] | The Trails at Buda Ranch [Member]
Debt Instrument [Line Items]
Total notes payable, net	21,025,000	21,025,000
Revolving Credit Facility [Member] | Refinanced PNC Bank Credit Facility [Member] | Deer Valley Apartments [Member]
Debt Instrument [Line Items]
Total notes payable, net	22,982,500	22,982,500
Revolving Credit Facility [Member] | Refinanced PNC Bank Credit Facility [Member] | Carrington Park at Huffmeister [Member]
Debt Instrument [Line Items]
Total notes payable, net	20,430,500	20,430,500
Revolving Credit Facility [Member] | Refinanced PNC Bank Credit Facility [Member] | Carrington Place [Member]
Debt Instrument [Line Items]
Total notes payable, net	27,535,500	27,535,500
Revolving Credit Facility [Member] | Refinanced PNC Bank Credit Facility [Member] | Carrington at Champion Forest [Member]
Debt Instrument [Line Items]
Total notes payable, net	25,121,250	25,121,250
Revolving Credit Facility [Member] | Refinanced PNC Bank Credit Facility [Member] | Audubon Park [Member]
Debt Instrument [Line Items]
Total notes payable, net	16,602,500	16,602,500
Revolving Credit Facility [Member] | Refinanced PNC Bank Credit Facility [Member] | Oak Crossing [Member]
Debt Instrument [Line Items]
Total notes payable, net	17,980,000	17,980,000
Revolving Credit Facility [Member] | Refinanced PNC Bank Credit Facility [Member] | Meritage at Steiner Ranch [Member]
Debt Instrument [Line Items]
Total notes payable, net	$ 58,580,000	$ 58,580,000

XML

Debt - Summary of Aggregate Maturities (Details)	Mar. 31, 2017 USD ($)
Debt Disclosure [Abstract]
Total	$ 1,222,021,911
Remainder of 2017	47,836,071
2018	75,880,559
2019	101,893,298
2020	87,550,294
2021	278,217,869
Thereafter	$ 630,643,820

XML

Stockholders' Equity - Narrative - General (Details) - $ / shares	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Class of Stock [Line Items]
Common and preferred stock, shares authorized (in shares)	1,100,000,000
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common Stock [Member]
Class of Stock [Line Items]
Common stock, shares authorized (in shares)	999,999,000	999,999,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Convertible Stock [Member]
Class of Stock [Line Items]
Common stock, shares authorized (in shares)	1,000	1,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Convertible Stock [Member] | Steadfast Income Advisor, LLC [Member]
Class of Stock [Line Items]
Stock issued during period, shares, new issues (in shares)	1,000
Convertible Stock [Member] | Steadfast Income Advisor, LLC [Member] | Steadfast Income Advisor, LLC [Member]
Class of Stock [Line Items]
Stock issued during period, shares, new issues (in shares)	1,000

XML

Stockholders' Equity - Narrative - Common Stock (Details)			3 Months Ended		12 Months Ended
	Jun. 11, 2014 USD ($) $ / shares shares	Jun. 12, 2009 $ / shares shares	Mar. 31, 2017 USD ($) installments vote / shares shares	Mar. 31, 2016 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2009 USD ($) shares
Class of Stock [Line Items]
Vote per share | vote / shares			1
Issuance of common stock					$ 0
Stock issued during period, dividend reinvestment plan (in shares) | shares			4,073,759
Proceeds from issuance of common stock, dividend reinvestment plan			$ 39,580,847
Share-based compensation			15,030	$ 12,864
Change in value of restricted common stock to Advisor			$ 0	113,607
Restricted Stock [Member]
Class of Stock [Line Items]
Restricted common stock, weighted average remaining vesting terms			1 year 5 months 19 days
Compensation expense related to issuance of restricted stock, not vested			$ 90,080
Restricted Stock [Member] | Director [Member]
Class of Stock [Line Items]
Restricted common stock, vesting installments | installments			4
Restricted Stock [Member] | General and Administrative Expense [Member]
Class of Stock [Line Items]
Share-based compensation			$ 15,030	12,864
Private Offering and Public Offering [Member]
Class of Stock [Line Items]
Commissions on sales of common stock and related dealer manager fees to affiliates			$ 95,845,468
Private Offering and Public Offering [Member] | Common Stock [Member]
Class of Stock [Line Items]
Issuance of common stock (in shares) | shares			76,732,395
Proceeds from issuance of stock, net			$ 679,572,220
Steadfast REIT Investments, LLC [Member] | Common Stock [Member]
Class of Stock [Line Items]
Issuance of common stock (in shares) | shares		22,223				22,223
Issuance of common stock						$ 200,007
Share price (in dollars per share) | $ / shares		$ 9
Steadfast Income Advisor, LLC [Member] | Steadfast Income Advisor, LLC [Member]
Class of Stock [Line Items]
Fair value of shares of restricted stock (in shares)	$ 5,000,000		5,637,207.03125		$ 5,637,207
Steadfast Income Advisor, LLC [Member] | Restricted Stock Agreement [Member] | Steadfast Income Advisor, LLC [Member]
Class of Stock [Line Items]
Issuance of restricted common stock to advisor (in shares) | shares	488,281.25
Steadfast Income Advisor, LLC [Member] | Restricted Stock [Member] | Tranche One [Member]
Class of Stock [Line Items]
Shares of restricted stock vesting percentage	50.00%
Steadfast Income Advisor, LLC [Member] | Restricted Stock [Member] | Tranche Two [Member]
Class of Stock [Line Items]
Shares of restricted stock vesting percentage	50.00%
Steadfast Income Advisor, LLC [Member] | Restricted Stock [Member] | Restricted Stock Agreement [Member] | Steadfast Income Advisor, LLC [Member]
Class of Stock [Line Items]
Share price (in dollars per share) | $ / shares	$ 10.24
Steadfast Income Advisor, LLC [Member] | Restricted Stock [Member] | General and Administrative Expense [Member] | Steadfast Income Advisor, LLC [Member]
Class of Stock [Line Items]
Change in value of restricted common stock to Advisor			$ 0	$ 113,607

XML

Stockholders' Equity - Schedule of Restricted Stock Issued to Independent Directors as Compensation (Details) - Restricted Stock [Member] - $ / shares	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested shares at the beginning of the year (in shares)	11,875	11,250	11,250
Granted shares (in shares)	0	7,500
Vested shares (in shares)	0	(6,875)
Nonvested shares at the end of the year (in shares)	11,875		11,875
Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Weighted Average Fair Value (in dollars per share)			$ 11.44

XML

Stockholders' Equity - Narrative - Convertible Stock (Details)	3 Months Ended
	Mar. 31, 2017 USD ($) shares
Class of Stock [Line Items]
Common stock, basis of conversion, percentage of annual return on original issue price of shares	8.00%
Common stock, conversion basis, percent enterprise value	10.00%
Steadfast Income Advisor, LLC [Member] | Convertible Stock [Member]
Class of Stock [Line Items]
Stock issued during period, shares, new issues (in shares)	1,000
Steadfast Income Advisor, LLC [Member] | Steadfast Income Advisor, LLC [Member] | Convertible Stock [Member]
Class of Stock [Line Items]
Stock issued during period, shares, new issues (in shares)	1,000
Common stock, basis of conversion, percentage of annual return on original issue price of shares	8.00%
Convertible common stock, redemption amount | $	$ 1
Conversion basis multiplier	0.001

XML

Stockholders' Equity - Narrative - Preferred Stock (Details)	3 Months Ended
	Mar. 31, 2017 class shares	Dec. 31, 2016 shares
Equity [Abstract]
Preferred stock, number of classes or series the Board of Directors is authorized to classify or reclassify | class	1
Preferred stock, number of classes or series the Board of Directors is authorized to issue | class	1
Preferred stock, shares outstanding (in shares) | shares	0	0
Preferred stock, shares issued (in shares) | shares	0	0

XML

Stockholders' Equity - Narrative - Distribution Reinvestment Plan (Details) - Distribution Reinvestment Plan [Member] - USD ($)	Mar. 31, 2017	Sep. 10, 2012	Jul. 23, 2009
Class of Stock [Line Items]
Share price (in dollars per share)		$ 9.73	$ 9.5
Sales commissions or dealer manager fees payable	$ 0

XML

Stockholders' Equity - Narrative - Share Repurchase Plan and Redeemable Common Stock (Details) - Share Repurchase Plan [Member] - USD ($)			3 Months Ended
	Aug. 09, 2016	Jul. 01, 2015	Mar. 31, 2017	Mar. 31, 2016
Class of Stock [Line Items]
Share repurchase program, authorized amount	$ 2,000,000	$ 1,000,000
Termination notice period			30 days
Common Stock [Member]
Class of Stock [Line Items]
Number of shares that can be repurchased before the first anniversary of date of purchase			0
Share repurchase plan, disability or death holding period exemption period, maximum			2 years
Stock repurchase plan, minimum redemption notice period			15 days
Stock repurchase plan, settlement period			30 days
Business days			3 days
Redemption of common stock (in shares)			183,955	99,243
Redemption of common stock			$ 2,000,000	$ 1,000,000
Stock requested for redemption, (in shares)			519,696	347,512
Stock requested for redemption, value			$ 5,967,020	$ 3,763,312
Redemption requests outstanding (in shares)			1,646,078	702,345
Total net redemption value			$ 19,009,693	$ 7,759,225
Stock repurchase plan, percentage of weighted-average number of shares outstanding, limit on repurchase			5.00%
Fee charged to repurchase shares			$ 0
Common Stock [Member] | Accounts Payable and Accrued Liabilities [Member]
Class of Stock [Line Items]
Total net redemption value			$ 2,000,000
Maximum [Member]
Class of Stock [Line Items]
Share repurchase program, authorized amount		$ 2,000,000

XML

Stockholders' Equity - Schedule of Repurchase Prices Under Share Repurchase Plan (Details) - Share Repurchase Plan [Member] - Common Stock [Member]	3 Months Ended
	Mar. 31, 2017
Class of Stock [Line Items]
Stock repurchase plan, repurchase price percentage, after primary offering, less than 1 year	0.00%
Stock repurchase plan, repurchase price percentage, after primary offering, anniversary year 1	92.50%
Stock repurchase plan, repurchase price percentage, after primary offering, anniversary year 2	95.00%
Stock repurchase plan, repurchase price percentage, after primary offering, anniversary year 3	97.50%
Stock repurchase plan, repurchase price percentage, after primary offering, anniversary year 4	100.00%
Required holding period to be eligible to redeem shares under share repurchase plan	1 year

XML

Stockholders' Equity - Narrative - Distributions Declared (Details) - USD ($)			3 Months Ended		9 Months Ended	12 Months Ended
	Sep. 10, 2012	Sep. 09, 2012	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2016
Class of Stock [Line Items]
Common share, distribution rate per share per day, declared (in dollars per share)			$ 0.001964	$ 0.001964
Less: dividends declared on participating securities			$ 13,447,122			$ 54,828,267
Distributions payable			$ 4,627,865		$ 4,625,355	4,625,355
Common Stock [Member]
Class of Stock [Line Items]
Common share, distribution rate per share per day, declared (in dollars per share)	$ 0.001964	$ 0.001917	$ 0.001964		$ 0.001964
Less: dividends declared on participating securities			$ 13,447,122	$ 13,649,330
Distributions payable			$ 4,627,865		$ 4,625,355	$ 4,625,355

XML

Stockholders' Equity - Narrative - Distributions Paid (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Class of Stock [Line Items]
Distributions to common stockholders	$ 13,444,612	$ 13,669,663

XML

Earnings (Loss) Per Share - Schedule of Reconciliation of Net Loss Attributable to Common Stockholders and Shares used in Calculating Basic and Diluted Earnings (Loss) Per Share (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Earnings Per Share [Abstract]
Net loss attributable to the Company	$ (5,644,875)	$ (3,618,142)	$ (25,579,651)
Less: dividends declared on participating securities	2,099	45,505
Net loss attributable to common stockholders	$ (5,646,974)	$ (3,663,647)
Weighted average common shares outstanding - basic and diluted (in shares)	76,066,450	76,350,555
Loss per common share - basic and diluted (in dollars per share)	$ (0.07)	$ (0.05)

XML

Related Party Arrangements - Schedule of Amounts Attributable to the Advisor and its Affiliates - Amounts Incurred and Payable (Details) - Steadfast Income Advisor, LLC [Member] - Advisor and its Affiliates [Member] - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Related Party Transaction [Line Items]
Related party transaction, expenses from transactions with related party	$ 11,301,229	$ 10,798,838
Related Party Transaction, Due from (to) Related Party	1,825,489		$ 2,663,381
Investment Management Fees [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Due from (to) Related Party	38,717		1,185,001
Property Management, Fees [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Due from (to) Related Party	537,572		534,056
Property Management, Labor and Related Benefits [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Due from (to) Related Party	1,015,869		805,274
Property Management, Other Fees [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Due from (to) Related Party	51,597		54,679
Property Management, Other Fees, Property Operations [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Due from (to) Related Party	0		0
Property Management, Other Fees, General and Administrative [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Due from (to) Related Party	0		0
Other Operating Expenses [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Due from (to) Related Party	227,517		184,954
Construction Management Fees [Member]
Related Party Transaction [Line Items]
Related party transaction, expenses from transactions with related party	197,879	245,033
Related Party Transaction, Due from (to) Related Party	8,645		16,431
Construction Management Reimbursement [Member]
Related Party Transaction [Line Items]
Related party transaction, expenses from transactions with related party	65,471	83,050
Related Party Transaction, Due from (to) Related Party	7,665		7,171
Prepaid Insurance [Member]
Related Party Transaction [Line Items]
Related party transaction, expenses from transactions with related party	62,092	37,245
Related Party Transaction, Due from (to) Related Party	(62,093)		$ (124,185)
Fees to Affiliates [Member] | Investment Management Fees [Member]
Related Party Transaction [Line Items]
Related party transaction, expenses from transactions with related party	3,581,155	3,501,124
Fees to Affiliates [Member] | Property Management, Fees [Member]
Related Party Transaction [Line Items]
Related party transaction, expenses from transactions with related party	1,606,536	1,571,982
Fees to Affiliates [Member] | Property Management, Other Fees [Member]
Related Party Transaction [Line Items]
Related party transaction, expenses from transactions with related party	434,332	449,317
Fees to Affiliates [Member] | Property Management, Other Fees, Property Operations [Member]
Related Party Transaction [Line Items]
Related party transaction, expenses from transactions with related party	46,836	0
Fees to Affiliates [Member] | Property Management, Other Fees, General and Administrative [Member]
Related Party Transaction [Line Items]
Related party transaction, expenses from transactions with related party	40,581	0
Operating, Maintenance and Management [Member] | Property Management, Labor and Related Benefits [Member]
Related Party Transaction [Line Items]
Related party transaction, expenses from transactions with related party	4,831,469	4,564,368
General and Administrative Expense [Member] | Other Operating Expenses [Member]
Related Party Transaction [Line Items]
Related party transaction, expenses from transactions with related party	$ 434,878	$ 346,719

XML

Related Party Arrangements - Narrative - Acquisition Fees and Expenses (Details) - Steadfast Income Advisor, LLC [Member] - Steadfast Income Advisor, LLC [Member]	3 Months Ended
	Mar. 31, 2017
Investment Management Fees [Member]
Related Party Transaction [Line Items]
Investment management fee, percentage	0.06667%
Acquisition Fees and Expenses [Member]
Related Party Transaction [Line Items]
Acquisition fee, percentage of purchase price of real property or related asset	2.00%
Acquisition fees and expenses, maximum, percentage of contract purchase price	6.00%

XML

Related Party Arrangements - Narrative - Property Management Fees and Expenses (Details)	3 Months Ended
	Mar. 31, 2017
Property Manager [Member]
Related Party Transaction [Line Items]
Property management, oversight fee, percent	1.00%
Steadfast Management Company, Inc. [Member] | Property Management Agreement [Member]
Related Party Transaction [Line Items]
Property management agreement, notice of termination breach	30 days
Steadfast Management Company, Inc. [Member] | Property Manager [Member] | Property Management Agreement [Member]
Related Party Transaction [Line Items]
Property management agreement, initial term	1 year
Property management agreement, notice of termination option	60 days
Steadfast Management Company, Inc. [Member] | Minimum [Member] | Property Manager [Member] | Property Management Agreement [Member]
Related Party Transaction [Line Items]
Property management fee, percent	2.50%
Steadfast Management Company, Inc. [Member] | Maximum [Member] | Property Manager [Member] | Property Management Agreement [Member]
Related Party Transaction [Line Items]
Property management fee, percent	3.75%

XML

Related Party Arrangements - Narrative - Construction Management Fees (Details) - Pacific Coast Land & Construction, Inc. [Member] - Affiliated Entity [Member] - Construction Management Agreement [Member]	3 Months Ended
	Mar. 31, 2017
Related Party Transaction [Line Items]
Construction management agreement, termination notification period	30 days
Minimum [Member]
Related Party Transaction [Line Items]
Construction management fee, percent	5.00%
Maximum [Member]
Related Party Transaction [Line Items]
Construction management fee, percent	12.00%

XML

Related Party Arrangements - Narrative - Other Operating Expense Reimbursements (Details) - Steadfast Income Advisor, LLC [Member] - Steadfast Income Advisor, LLC [Member] - Other Operating Expense Reimbursement [Member]	3 Months Ended
	Mar. 31, 2017 quarter
Related Party Transaction [Line Items]
Operating expenses limited, number of quarters	4
Other operating expense reimbursement, percentage of average invested assets, threshold	2.00%
Other operating expense reimbursement, percentage of net income, threshold	25.00%
Average invested assets calculation period	12 months

XML

Related Party Arrangements - Narrative - Disposition Fee (Details) - Steadfast Income Advisor, LLC [Member] - Steadfast Income Advisor, LLC [Member]	3 Months Ended
	Mar. 31, 2017 $ / shares
Disposition Fees [Member]
Related Party Transaction [Line Items]
Disposition fee, percent of sales price	1.50%
Disposition fee, maximum brokerage commission paid threshold, percent	50.00%
Disposition fee, maximum, percentage of sales price	3.00%
Acquisition fees and expenses, maximum, percentage of contract purchase price	6.00%
Other Operating Expenses [Member]
Related Party Transaction [Line Items]
Other operating expense reimbursement, percentage of average invested assets, threshold	2.00%
Other operating expense reimbursement, percentage of net income, threshold	25.00%
Disposition Fees Range 1 [Member]
Related Party Transaction [Line Items]
Disposition fee, percent of sales price	0.50%
Share price (in dollars per share)	$ 9.00
Disposition Fees Range 2 [Member]
Related Party Transaction [Line Items]
Disposition fee, percent of sales price	0.75%
Disposition Fees Range 3 [Member]
Related Party Transaction [Line Items]
Disposition fee, percent of sales price	1.00%
Disposition Fees Range 4 [Member]
Related Party Transaction [Line Items]
Disposition fee, percent of sales price	1.25%
Disposition Fees Range 5 [Member]
Related Party Transaction [Line Items]
Disposition fee, percent of sales price	1.50%
Share price (in dollars per share)	$ 12.01
Minimum [Member] | Disposition Fees Range 2 [Member]
Related Party Transaction [Line Items]
Share price (in dollars per share)	9.01
Minimum [Member] | Disposition Fees Range 3 [Member]
Related Party Transaction [Line Items]
Share price (in dollars per share)	10.25
Minimum [Member] | Disposition Fees Range 4 [Member]
Related Party Transaction [Line Items]
Share price (in dollars per share)	11.25
Maximum [Member] | Disposition Fees Range 2 [Member]
Related Party Transaction [Line Items]
Share price (in dollars per share)	10.24
Maximum [Member] | Disposition Fees Range 3 [Member]
Related Party Transaction [Line Items]
Share price (in dollars per share)	11.24
Maximum [Member] | Disposition Fees Range 4 [Member]
Related Party Transaction [Line Items]
Share price (in dollars per share)	$ 12.00

XML

Related Party Arrangements - Narrative - Restricted Stock Agreement (Details) - Steadfast Income Advisor, LLC [Member]	Jun. 11, 2014 USD ($) $ / shares shares
Steadfast Income Advisor, LLC [Member] | Restricted Stock Agreement [Member]
Related Party Transaction [Line Items]
Issuance of restricted common stock to advisor (in shares) | shares	488,281.25
Issuance of restricted common stock to Advisor | $	$ 5,000,000
Restricted Stock [Member] | Steadfast Income Advisor, LLC [Member] | Restricted Stock Agreement [Member]
Related Party Transaction [Line Items]
Share price (in dollars per share) | $ / shares	$ 10.24
Tranche One [Member] | Restricted Stock [Member]
Related Party Transaction [Line Items]
Shares of restricted stock vesting percentage	50.00%
Tranche Two [Member] | Restricted Stock [Member]
Related Party Transaction [Line Items]
Shares of restricted stock vesting percentage	50.00%

XML

Incentive Award Plan and Independent Director Compensation - Narrative (Details) - USD ($)		3 Months Ended		9 Months Ended
	Aug. 09, 2016	Mar. 31, 2017	Mar. 31, 2016	Jul. 09, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation		$ 15,030	$ 12,864
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted shares (in shares)		0	7,500
Independent Directors Compensation Plan [Member] | Director [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock vesting percentage		25.00%
Restricted common stock, award vesting period		3 years
Initial Election [Member] | Independent Directors Compensation Plan [Member] | Director [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted shares (in shares)		5,000
Re-Election [Member] | Director [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted shares (in shares)	2,500	2,500
Private Offering [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from issuance of common stock		$ 2,000,000		$ 5,844,325

XML

Derivative Financial Instruments - Schedule of Interest Rate Derivative Instruments (Details) - Cash Flow Hedging [Member] - Not Designated as Hedging Instrument [Member] - Interest Rate Cap [Member]	Mar. 31, 2017 USD ($) instrument	Dec. 31, 2016 USD ($) instrument
Derivative [Line Items]
Number of Instruments | instrument	43	43
Notional Amount	$ 973,400,000	$ 973,400,000
Weighted Average Rate Cap	2.75%	2.70%
Interest rate derivative assets, fair value	$ 298,888	$ 618,841
LIBOR [Member]
Derivative [Line Items]
Variable Rate	0.98%	0.77%

XML

Derivative Financial Instruments - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Derivative [Line Items]
Unrealized loss on derivatives	$ (319,953)	$ (232,712)
Interest Rate Cap [Member]
Derivative [Line Items]
Unrealized loss on derivatives	(319,953)	(232,712)
Interest Rate Cap [Member] | Deferred Financing Costs and Other Assets, Net [Member]
Derivative [Line Items]
Interest rate derivative assets, fair value	298,888		$ 618,841
Interest Expense [Member] | Interest Rate Cap [Member]
Derivative [Line Items]
Unrealized loss on derivatives	$ (319,953)	$ (232,712)

XML

Subsequent Events - Narrative (Details) - USD ($)					3 Months Ended
	May 09, 2017	May 01, 2017	Apr. 28, 2017	Apr. 03, 2017	Mar. 31, 2017	Mar. 31, 2016
Subsequent Event [Line Items]
Distributions declared per common share (in dollars per share)					$ 0.177	$ 0.178
Share Repurchase Plan [Member] | Common Stock [Member]
Subsequent Event [Line Items]
Redemption of common stock (in shares)					183,955	99,243
Redemption of common stock					$ 2,000,000	$ 1,000,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Distributions declared per common share (in dollars per share)	$ 0.001964
Subsequent Event [Member] | Share Repurchase Plan [Member] | Common Stock [Member]
Subsequent Event [Line Items]
Redemption of common stock (in shares)			180,226
Redemption of common stock			$ 2,000,000
Redemption value per share (in dollars per share)			$ 11.10
Subsequent Event [Member] | Dividend Paid [Member]
Subsequent Event [Line Items]
Distributions paid, common stock, including distribution reinvestment plan		$ 4,477,560		$ 4,627,865