Investors

Purchase a newly constructed residential investment property
Immediate long-term tenant (homebuilder) in place (< 1 -5 years)
Tenant does not live in the home; only uses it to show prospective buyers the living space and available features/upgrades of homes for sale
Reliable lease payments (the homebuilder is the tenant)
No property management fees (the homebuilder maintains the home)
No maintenance and repair expenses (the homebuilder is responsible)
Homes are meticulously cared for at no cost (the homebuilder has a vested interest to maintain the home in pristine condition throughout the term of the lease)
Price appreciation (since model homes are typically built in the early stages of a housing development, they can often be purchased at a lower price than subsequent phases)
Upgrades (model homes typically include all the amenities, features and upgrades available by the homebuilder)

A model home leaseback can minimize three different risks for an investor:

Collection loss; the risk that a tenant won’t pay some or all of the rent. With a model home leaseback, your tenant is a company rather than a individual. In general, a company may be less likely to suffer financial distress due to a layoff, medical issue, etc.
Vacancy; most real estate investment properties don’t include a tenant when you close on the property. It could take weeks or even months to find a good tenant. In addition, residential leases are typically for one year, which means you may need to search for a new tenant on an annual basis. With a model home leaseback, however, you start earning income on your investment from day one and will only have one tenant with a potential long-term lease.
Damage to the property; With a model home leaseback, the homebuilder has every incentive to keep the home in pristine condition. Additionally, since no one is actually living in the home, there should be less wear and tear on things like the shower, plumbing, appliances, etc.