And so that’s a strong driver for new families, particularly because we’re opening up this K7. It will be a full K8 facility. We may not open all those grades all at once, but that’s what the capacity of that is. And so we find that to be some good traffic flow on the single-family rental business, which is kind of putting a little bit of wind in our sale on why we may partner with some of our builders to claw back a few of those lots and cells.
Unidentified Analyst: Okay. Yes, because that’s what I was — so you’re saying the financing is still favorable. The rental market is robust. So I guess if I can float something that maybe I’m sure you guys have thought of something that looks really attractive. You look at capital allocation and you’ve talked about the land, the problem with land is one, land still is by no means cheap at all. And two, as you guys are obviously aware, you buy the land and want it costs a lot of — it requires a lot of capital to develop. And two, it takes a lot of time, so with what kind of is already on our plate, I’m not really sure land is the best use of capital at this point. You look at the water rights and similar to the previous caller, it’s nice, but when you’re a public company in the market, just gives you no credit for the water assets you have, that might not be the best use of capital either.
We’ve been over the back and one thing, I think, just in terms of looking at how you guys are approaching this, you mentioned investing in your own currency, but really, I think the correct way to view that is, if you put the first sale sign up and the company is worth, say, $25 a share, if you’re capitalizing on an $8 print, you’re creating immense value for the shareholders that continue to stay along for the ride. So you’re doing that now, which I commend and I think that’s great. And I think you guys should be aggressive at these prices. But then you get into the single-family rental business. And again, it’s like buying back stock where your basically able to create a $400,000 or $500,000 asset at a fraction of that cost. You own the land, keep the developer margin.
And then on top of that, you have tremendous optionality with the financing. So let’s call it, if you can put one of these things up for, let’s say, $250,000, $300,000 and most of that you can finance with bank money, you’re able to not only create value, but you’re also keeping the momentum at Sky Ranch moving. I think one of the biggest and most important things in an environment like right now is keeping things moving in an efficient manner and even leading into the commercial keep the rooftops coming. So if there is a slowdown like you’ve mentioned and maybe some of the builders are — they’re not selling as many homes or whatever. You guys could realistically take down 100 homes, and if you break out what that would actually cost you guys and then you back out the financing, even something like that, wouldn’t be that expensive?
Wouldn’t cost that much money. You build the water business, you keep the roofs coming, and you’d also be making money doing that. So I think that this is really an opportunity where you guys should heavily evaluate stepping up the rental business because as you said, it’s a win-win. And I was just curious if kind of with what I said, you had thoughts on that or followed along or where maybe you would disagree with any of that? I’m just curious because I’ve been thinking about that. It just looks like a no-brainer type of opportunity for you guys right now?
