Real Estate Investing News and Advice!

Welcome to your source for real estate investing news, insights, and guidance.

As industry experts, we stay up-to-date with real estate market trends, and actively work to stay ahead of changing market conditions. We’re excited to share our research and analysis with you! With these market insights, and real estate investing tips, you’ll have a competitive advantage over other investors in your local market.

The topics we cover include real estate news, interesting market trends, buying and selling real estate, and managing rental properties. We also share company news from Gatsby Investment, so you’ll have the inside track as Gatsby continues to expand operations.

Want to learn even more? Click the links to view educational articles, press releases, and explainer videos.

The Future of Real Estate Crowdfunding: Predictions for 2026 and Beyond

Real estate crowdfunding has quickly become one of the most popular ways to invest in real estate! Even as the real estate market has slowed from the buyer frenzy of the early 2020s, investors are finding impressive return potential in crowdfunded projects today.

With comparatively low investment minimums, easy online access, and no prior experience required, crowdfunding is an option for a wide range of investors. Whether you’re new to real estate investing or you’re a seasoned high-net-worth investor, crowdfunding has a place in your portfolio.

In this article, we’re going to explore where real estate crowdfunding is headed in 2026 and beyond, and share predictions from industry experts to help you get ahead of the curve!

But first, a quick primer on crowdfunding and why it’s such a valuable asset class.

What Is Real Estate Crowdfunding?

Real estate crowdfunding is when multiple investors pool their funds to finance a specific real estate project (like a single-family house flip or a multi-family development). The project is professionally managed by a real estate sponsor, who scouts potential deals, acquires the property on behalf of the owners, supervises the renovation or construction, manages the ongoing rental or resale of the completed property, and disburses any proceeds back to the investors.

Real estate crowdfunding has existed for hundreds of years, but deals were traditionally arranged as private equity partnerships among a small group of connected investors. It wasn’t until the JOBS Act of 2012 that the US Securities and Exchange Commission (SEC) allowed real estate investment companies to offer shares in crowdfunded deals to the general public. Thanks to this change, you don’t have to be personally connected with sponsors and other investors to join a crowdfunded project. Anyone who meets the SEC’s criteria as an accredited investor can take advantage of crowdfunding today!

Key Benefits of Real Estate Crowdfunding

Crowdfunding has taken off since it became accessible to the general public in 2012 because it offers the benefits of real estate investing while mitigating the risks.

Consider these benefits of crowdfunding:

Lower barriers to entry. Instead of shouldering the full financial burden yourself, you split the capital requirements across multiple investors. This makes real estate investing much more accessible. Depending on the deal, you could potentially buy into a multi-million dollar project with as little as $25K.

Access to larger, more complex projects. Complicated high-value projects (like multi-family development, for example) are difficult for individual investors because of the high cost, specialized knowledge, time, and industry connections required. But with crowdfunding, you get to leverage the sponsor's experience and resources!
Opportunity for diversification. Not only does real estate crowdfunding make it easy to diversify a securities-heavy portfolio, but with low investment minimums, you can allocate your capital across multiple crowdfunded projects for even greater diversification.
Flexible options to align with your personal goals. Since crowdfunding covers multiple property types and strategies, you get to hand-select the pre-vetted deals that work best for you. For example, a fix-and-flip by build-to-sell could offer fairly quick returns, while rentals create recurring cash flow and long-term appreciation.
Attractive return potential. Experienced sponsors often have systems in place to reduce costs while keeping quality high and finding ways to add value to a project. Smart deals can outperform the market.
Passivity. Because the sponsor manages sourcing, financing, operations, and eventual exit, you get a truly passive way to invest in real estate. There’s zero time, energy, prior experience, or specialized skill required from you as an investor!
Easy online investing. Placing an investment is as easy as 1) reviewing the available deals, 2) choosing the project(s) you like best, and 3) wiring the funds to your sponsor. From there, you can kick back and track the projects’ progress through an online dashboard.

The Future of Real Estate Crowdfunding in 2026 and Beyond

So what’s in store for real estate crowdfunding as we enter the second half of the 2020s? Here are our expert predictions:

Prediction #1: Companies Focusing on Highly-Specialized Niches

As interest rates remain higher than we’re used to, the cost of borrowing has cut into profit margins. So real estate investment companies must be more selective about the types of deals and projects they’re offering to investors.

Take Gatsby Investment, for example. In the early 2020s, there was good money to be made on a range of projects, including house flips, luxury home construction, and multi-family rentals. However, with the shifting market, Gatsby has narrowed its focus on the investment model that performs best under current conditions: small multi-family built-to-rent (BTR). These structures are built from the ground up for immediate equity, then leased up to provide passive income while taking advantage of longer-term appreciation. Then, when the property is eventually sold, investors benefit from lower capital gains rates thanks to the rental holding period. With a focus on the Los Angeles market, Gatsby has the systems and local contractors in place to maximize return potential while minimizing risk for this unique niche.

Prediction #2: Exponential Growth as the Model Expands

At the end of 2023, the global real estate crowdfunding market was valued at $12.5 billion. By the end of 2025, that figure was up to $48.81 billion! With a projected growth of 46.19% for the forecast period (as determined by the Custom Market Insights research firm), the sector could hit $2.18 trillion by 2034.

This growth is largely due to the key benefits of crowdfunding for investors outlined above. As more investors learn of this opportunity, they’re more inclined to invest in real estate via crowdfunding because of the ease, scalability, and profitability potential of this model.

Interestingly, we’re even seeing investors opt for real estate crowdfunding investments rather than homeownership in some cases. Take Gen Z, for example. Homeownership is financially out of reach for many would-be buyers in this generation. But they still recognize the value of real estate as an investment, so they join in crowdfunding to leverage real estate, even when they can’t afford to buy a home for themselves. Similarly, some retirees are investing in crowdfunded real estate deals while opting for the convenience of renting rather than owning their primary residence.

The low investment minimums and professional management make real estate investing possible even for renters!

Prediction #3: Greater Interest in Equity-Based Syndication (Especially Deal-by-Deals)

Real estate syndication is a special arrangement within the general crowdfunding ecosystem. With syndication, you become a limited partner of the entity that owns the real estate project. This gives syndication a more stable legal ownership structure than general crowdfunding. Plus, as a member of the ownership entity, you have an ownership stake in the underlying real estate and are entitled to your share of the property’s equity (unlike debt-based crowdfunding, in which you simply serve as a lender for a lower set rate of return).

Furthermore, syndication opportunities are more likely to be offered in a deal-by-deal format, in which you can choose the specific project(s) you wish to invest in (rather than whole fund investing, which requires you to invest in a general fund that might buy or sell properties without your knowledge or consent). Deal-by-deal gives you more control over your portfolio.

There are a few other minor differences that you can read about in our article on real estate syndication vs. crowdfunding.

How to Start Investing in Real Estate Crowdfunding

Investing in real estate crowdfunding is a surprisingly quick and easy process.

Simply:

Compare top real estate crowdfunding platforms to find one that suits your needs and goals.
Create an online account with that platform via their website (you can sign up with Gatsby here).
If you’re looking to invest in a syndicated deal, you will likely need to be verified as an accredited investor. This verification is required by the SEC for certain investment types and can be completed online.
Choose from the platform’s available opportunities. You can view Gatsby’s real estate investment projects even without signing up (although you need to sign up for a free account to view the specific details and financials for each project).
Wire your funds to activate your investment.

From there, most platforms allow you to monitor the progress of your investments through a convenient online dashboard.

The future of real estate crowdfunding is extremely bright. Don’t miss the opportunity to get in on the ground floor by investing today!

What I Learned About Buying Property Abroad (and Why I Choose to Invest in SoCal)

When my husband and I moved abroad in 2016 for his video game development career, I planned to keep the same real estate investment strategy that had worked for us in California:

Buy a home under favorable primary residence mortgage financing
Complete a live-in renovation to add value while saving for the down payment on a new home
Rent out the renovated home
Start the process over again with our next new home

I underestimated how differently real estate transactions and home loans work in other countries.

Since 2016, we’ve lived in multiple German cities (Hamburg, Frankfurt, and a tiny village near Bremen), and Skövde, Sweden. And, let me tell you, this has been an education. Here are a few things I’ve learned about buying property abroad, and why I still choose to invest in SoCal real estate while living in Europe.

5 Things that Surprised Me About Buying Property in Europe

1. A 3% Down Payment Typically Doesn’t Exist (Even for Locals)

Perhaps this shouldn’t have been surprising. But it was.

While we’d been using 3.5% down FHA loans and 3% down conventional loans in the US, most Europeans put down 15-20% to buy a home. For a foreign resident with limited European credit history, you’re looking at more like 30-50%.

When we lived in Frankfurt (2017-2020), apartments averaged just over €1 million (around $1,150,000). No way we could quickly save $345,000 for a 30% down payment. With our future uncertain and affordable rentals available, it didn’t make sense to buy.

2. A 30-Year Fixed Mortgage Is Rare

I took the 30-year fixed-rate mortgage as a given. Oops.

When we bought our property in Skövde, I learned that you don’t just get one long-term mortgage. You get multiple mortgages of varied lengths and interest rates in an effort to mitigate interest rate risk.

For my stability-loving, plan-ahead brain, this is very confusing.

From what I understand, banks tend to avoid offering long, fixed-rate loans because they risk losing money if interest rates increase. Instead, they offer multiple, shorter-term loans with the assumption of ongoing monitoring, refinancing, and adaptation to market conditions. Your home loan is more of a rolling financial strategy than a set-it-and-forget-it tool.

While there’s no end to the configurations available, we took out three loans: a 3-year ARM (adjustable-rate mortgage), a 7-year ARM, and a 10-year fixed. While the rates on the ARMs are subject to change, there are limits to the periodic changes, so the rates don’t get a full reset until the end of the loan term, at which point we refinance under current interest rates.

3. You Typically Owe the Full Interest Amount, Even if You Sell Before the Loan is Repaid

In the US, it’s normal to pay off your loan early (often through selling the house and using the proceeds to pay off the loan). While some mortgages charge pre-payment penalties, most don’t. And even those that do don’t typically require you to pay anywhere near the full amount of interest that would have accrued if you had completed the loan term as originally scheduled.

In Europe, it’s common to be on the hook for the full interest charge on the original loan. That’s why so many loans are short-term. Buyers might not want to commit to a 15-year mortgage if they plan to sell in 10 years and would still owe the full interest obligation when they sell.

Short-term loans avoid unnecessary interest expense in Europe.

4. Mortgages Don’t Always Fully Amortize

Now, you might be thinking, but how can someone afford the monthly payment on three separate loans when the longest loan term is 10 years?

The answer: mortgage loans don’t necessarily fully amortize. When these short-term loans are repaid, you either sell or get new loans to keep moving forward toward repaying the original purchase.

It’s meant to be flexible, but it just feels messy to me.

5. Strict Rental Income Limits Make Rental Investing Less Appealing

We lived in Frankfurt for three years, and our landlord never increased the rent. At the end of each one-year lease term, the landlord confirmed that we’d be staying on for another year at the same rate. An incredibly reasonable €1,350 ($1,552) per month.

While I can’t speak for all European countries, Germany and Sweden are both extremely tenant-friendly. There are strict limits to how much landlords can charge and when/how rents can increase. So investing in rentals doesn’t yield the same returns here as it does in other markets.

Why I Continue to Invest in SoCal Real Estate

Given my international real estate investment experience, Southern California is my market of choice, no matter where I live. Here’s why:

Long-term financing stability. I love my 30-year, fixed-rate mortgages. I appreciate knowing how much my principal and interest will cost every month until I refinance, sell, or pay off the loan. And I rest easy knowing that I won’t have to pay interest for the full term if I refinance, sell, or pay off the loan early.

The ongoing demand for more housing. Southern California continues to face a decades-long housing shortage. Between under-construction, zoning laws, and geographic barriers, inventory is perpetually tight (particularly in Los Angeles). But demand remains high due to employment opportunities, sunshine, and amenities.
Strong track record of appreciation. The same factors that contribute to ongoing demand have pushed home values up substantially over time.
Fewer constraints on rental income. European countries often regulate rent through cost-based formulas, reference indexes, or caps on increases. But in most communities across SoCal, rent is primarily market-driven, giving investors more flexibility and potential upside.
Accessibility. There are so many ways to access the property ladder in the US. For example, you can buy a primary residence with as little as 3% down (with good credit), and use house hacking to turn that home into an income stream. Or, you can invest in real estate crowdfunding and syndication to own a share of a professionally-managed real estate project. No time, experience, or hassle required!

How Gatsby Makes It Easy for Hands-Off Investors to Invest in SoCal (Even from Abroad)

Gatsby Investment is a Southern California-based real estate syndication company. Since 2016, Gatsby has been focused on the Los Angeles housing market, offering high-return-potential deals to investors all over the world.

Gatsby offers a range of real estate syndication projects, tailored to meet changing market conditions and maximize returns. Based on the 2026 outlook for LA real estate, Gatsby is niching down on multi-family build-to-rent (BTR), an innovative model combining the equity of developing a new building from the ground up with the income and tax benefitsof a rental.

By investing with Gatsby, you don’t have to worry about scouting potential deals, overseeing construction, or managing tenants. Gatsby handles every detail for you.

Whether you’re a local Californian or living abroad, like me, Gatsby makes it easy to leverage the strengths of the SoCal housing market!

Why Los Angeles is the Best-Kept Secret in Real Estate Investing

Everyone thinks they understand the Los Angeles housing market. It’s big. It’s expensive. It’s competitive. And it’s always in the headlines. But beneath the surface, LA operates differently from many US metro markets. And that difference is exactly what makes it so compelling for investors who actually know how it works.

While many buyers focus on the latest “hot” cities in the Sun Belt, trendy towns in the Rust Belt, or fast-growing metros in the Bible Belt, Los Angeles continues to quietly reward long-term, fundamentals-driven investing.

This article isn’t about hype or trying to convince you that LA is easy money. Instead, we’ll look at why investors often hesitate when it comes to Los Angeles, and then unpack the data-backed reasons why those same concerns may be precisely what creates opportunity here.

If you’re willing to look past the headlines, Los Angeles might just be one of real estate’s best-kept secrets!

Why Investors Often Overlook Los Angeles

Let’s start with why some investors avoid LA:

High entry prices. LA real estate is expensive compared to most other metro areas. Higher purchase prices, larger down payments, and greater closing costs can push investors with less capital toward more affordable markets.

Media narratives focus on the negative. Coverage tends to highlight any perceived outbound migration or temporary value dips, often without equal attention to historical recovery patterns.
Lower cap rates. When investors focus primarily on cap rates or immediate cash flow, LA may appear to underperform compared to cheaper markets. That can cause the entire city to be dismissed before total return potential (appreciation, tax advantages, and value-add upside) is fully considered.
It’s not a “one-size-fits-all” market. LA rewards local knowledge. Neighborhood-level dynamics and hyper-local ordinances can intimidate investors who aren’t as familiar with individual LA communities.
Permitting and development timelines may be longer. Renovations, additions, and new construction can take more time because of permitting processes and inspections.
Opportunity isn’t always obvious on listings. Value in LA is often unlocked through zoning changes, development, repositioning, ADUs, or long-term holds, which can be easy to miss when scrolling MLS data.

10 Benefits that Make Los Angeles a Prime Market for Real Estate Investors

With those deterrents in mind, let’s take a look at 10 reasons why LA is a high-performing market for experienced local investors.

1. High Barrier to Entry Limits Competition

High purchase prices naturally prevent some investors from exploring the Los Angeles housing market, which limits competition for those who are able to invest here.

While limited competition typically grants buyers more negotiating leverage, it’s worth noting that a healthy market balances supply and demand through the real estate cycle. For sustainability, it’s important that enough people are able to access the market.

Gatsby Investment helps make LA more accessible to everyday investors by allowing investors to buy shares of pre-vetted local deals. You get the benefits of investing in LA without having to directly manage a property or shoulder the financial responsibility alone.

2. Chronic Housing Undersupply Creates Built-In Demand

LA has one of the most severe, long-lasting housing shortages in the country. Because of inventory constraints like underconstruction, geography, zoning restrictions, and “aging-in-place” homeowners, demand consistently outpaces new supply. This supports long-term price stability and rent growth, even during market slowdowns.

Again, we’re looking to balance investor turns with sustainable growth. That’s why Gatsby actively adds to the local inventory. Small, multi-family developments are in exceedingly high demand due to the housing shortage. So we (and our investors) can help to ease the housing shortage while benefiting from strong return potential by building these structures.

3. Changing Zoning Laws Create Unique Opportunities

LA’s sprawl is largely due to original zoning laws, which limited buildings across most of the city to single-family homes. The need for more housing has prompted lawmakers to change zoning in some areas to accept small multi-family buildings on lots that were formerly zoned for single-family use.

Because of this zoning change, Gatsby can purchase comparatively affordable single-family lots on which to build small multi-family structures. This strategic cost-saving measure increases returns for investors.

4. Recession Resilience Is Historically Proven

LA real estate has repeatedly shown faster recoveries after downturns compared to many boom-and-bust markets. Prices may “correct” after periods of excessive growth through temporary dips in value. But they tend to rebound strongly because the underlying economic drivers never disappear.

5. Economic Diversification

Entertainment, tech, aerospace, healthcare, logistics, tourism, education, and international trade are all well-represented in LA. This diversification reduces reliance on any single industry and stabilizes housing demand across market cycles.

6. Infrastructure Investment

Massive public and private investments, including transit expansion, airport modernization, and housing initiatives, are quietly improving livability and accessibility in key neighborhoods, laying the groundwork for future appreciation. And with infrastructure upgrades in the works to prepare for upcoming global events, such as the FIFA World Cup in 2026, the Super Bowl in 2027, and the Olympics in 2028, appreciation is being fast-tracked in hosting neighborhoods and the city as a whole.

7. Forced Appreciation Opportunities

In addition to the long-term appreciation and added appreciation from current initiatives, investors in the LA market have multiple opportunities to force appreciation by adding value to existing properties. There are multiple ways to add valueto the aging housing stock and underutilized properties. You can reconfigure units, renovate older buildings, or even add accessory dwelling units (ADUs) in ways that simply aren’t possible in newer, master-planned markets.

8. Rental Growth

A decade-long RentCafe study found that average rent in the city of Los Angeles increased by about 65% from 2010 to 2019, a much larger gain than the 36% increase in the US overall during the same period. For a shorter-term, albeit more recent, snapshot, we can look at data from West Point Property Management and Apartment Advisor, which show that LA rental growth outpaced the national average 6.3% to 3.5% from 2024-2025.

9. Global Capital Supports High Values

LA remains a global city. International buyers, institutional investors, and high-net-worth individuals continue to view LA real estate as a tangible asset hedge, supporting demand even when sentiment about the general American housing market turns negative.

10. Cap Rate Obsession Hides True Returns

Many investors dismiss LA because cap rates look low on paper. But appreciation, tax strategies, long hold periods, and redevelopment upside often produce competitive (or superior) total returns compared to higher-cap, higher-risk markets.

No One Knows LA Better Than Gatsby

Gatsby Investment has been working day in and day out in the Los Angeles market for nearly a decade. Our 100% profitable track record shows that our team of real estate analysts understands the LA market better than anyone. And we’re putting our expertise to work for investors.

Whether you’re a born-and-raised Angelino or an investor who’s not yet visited our larger-than-life city, we welcome you to join us in contributing to the sustainability of the Los Angeles housing market while enjoying strong return potential!

Learn more about investing with Gatsby and explore our available real estate investment opportunities today!

The 2026 Housing Market Forecast for Investors

Were you underwhelmed by the 2025 housing market? Maybe you even took a step back from real estate investing as the market stalled under high prices, not-so-low interest rates, and fewer home sellers.

What’s in store for 2026? And are their investment opportunities worth pursuing in the coming year?

In this 2026 housing market forecast for real estate investors, we’ll break down the key conditions shaping the year ahead. And we’ll show you how to adapt your strategy to stay profitable in a market that rewards precision and patience.

Quick note: As a Los Angeles-based real estate investment company, Gatsby Investment provides local resources as well as national insights like this. If you’re interested in LA-specific data, check out our Los Angeles Real Estate Outlook for 2026.

Overview of the Residential Real Estate Market as We Enter 2026

Here is a snapshot of the American housing market as we enter 2026:

Stable home prices. While some geographic markets have seen prices dip recently, the nationwide median home sales price currently sits at $433,261 (as of December 2025), up a modest .7% year-over-year.

Slight declines in rental rates. As of November 2024, national rents for one and two-bedroom units have dipped by 2.2% and 1.2%, respectively.
Less activity. 363,194 American homes sold in December 2025, representing a decrease of 6.7% compared to the previous December.

Overall, the market is showing signs of stagnation, which is a pretty predictable response to high home prices and higher-than-we’re-used-to interest rates.

While this slow market is sidelining fair-weather investors, it’s creating opportunities for experienced investors!

3 Housing Market Conditions to Expect in 2026

Here’s what you can expect from the 2026 American housing market on the whole (and how you can work with it for a strong ROI)

1. Stable Interest Rates

30-year fixed mortgage rates have come down from their 2023 peak of 7.8%, but with rates still in the 6% range (with no serious dips in sight), the cost of borrowing money for real estate investments is still higher than the hyper-low rates of the 2000s and 2010s.

While it’s important to remember that 6% is still less than the historical average (with rates sitting at double-digit figures throughout most of the 1980s), these rates feel high because rates had been so low for so long before the inflation-fighting jump of 2022.

And the feeling of being too high matters because it deters buyers and locks homeowners with hyper-low rates into “golden handcuffs” (they don’t want to give up their rate by selling and have to take out a new loan with today’s rates). So, buying and selling stalls. And the market slows.

How to Work with 2026’s Interest Rates

Don’t let today’s interest rates keep you from investing in real estate.

Can you imagine an investor in 1980 waiting for rates to fall below 5% before buying a home? They would have had to wait 23 years. And by then, the median home price would have increased by 65%. What they could have bought for $63,700 in 1980 would have cost $186,000 by 2003.

Instead of waiting for rates to fall, do what you can to work with today’s rates:

Maintain strong credit scores for lower rates. Lenders view borrowers with higher credit scores as less risky. So they offer favorable terms, such as lower rates.

Watch for opportunities to refinance if rates fall in the future. If rates drop, you can refinance to replace your existing mortgage with a new mortgage under the lower rates. Just know that you’ll likely need to maintain your financial position, gain home equity, and make your mortgage payments on time to qualify when the time comes.
Consider an adjustable-rate mortgage (ARM). Not only are introductory rates lower with an ARM than with a fixed-rate mortgage (typically for the first five years), but after that period, rates automatically adjust at set intervals to reflect changing market conditions. So, if rates fall, your mortgage will adjust without the need to refinance. Warning: If rates increase, your rate will automatically increase as well. So you may want to have an exit strategy, or watch rates so you can refi to a fixed-rate before rates increase.
Look for creative financing solutions. Assumable mortgages, for example, allow a buyer to take over an existing mortgage under the current terms as long as the down payment covers the seller’s equity. But you might need to search for such a seller since the mortgage would need to have been made assumable when originated, which is not the default. You might also consider seller carry-back financing, in which the seller serves as the lender, loaning you the money for the purchase and accepting monthly installment payments. The seller may be willing to offer a much lower rate than a traditional lender.

2. A Persistent Housing Shortage that Keeps a Floor Under Demand

We’ve been exploring Los Angeles’ housing shortage for years, but this isn’t a problem specific to our market. Nationwide, major researchers estimate that the US still needs around 3.7 million more housing units to meet demand (based on data through Q3 2024).

There are multiple reasons for the countrywide shortfall. Primarily, we’re just not building enough. Industry regulations, zoning restrictions, supply chain disruptions, and labor force shortages all make new construction difficult. And many individual investors simply don’t have the experience or time needed to oversee a new development from the ground up.

But there’s some good news. First, this lack of inventory helps protect home values (however, it’s critical that we find a balance between growth and accessibility to avoid pricing so many buyers out of the market that we end up with a real estate market bubble). Secondly, this creates an incredible opportunity for those with the resources to develop new units. Real estate developers (and those who invest in development via crowdfunding and syndication) are able to help ease the shortage to keep growth sustainable while also earning strong returns.

How to Work with Low Supply in 2026

Here are a few tips to work around the lack of inventory this year:

Go beyond the MLS. The Multiple Listing Service may not be full of motivated sellers right now, but you might find buying opportunities through tax sales, probate proceedings, pre-foreclosures, and foreclosures.

Nurture your network. Local real estate agents, developers, and even other investors could be your key to off-market deals.
Be the supplier. In a supply-short market, adding units is often a stronger long-term play than fighting over existing properties. If you have the resources, ground-up development is highly appealing in 2026.

3. Modest National Appreciation (with Big Differences in Local Pockets)

Most credible outlooks point to moderate home price growth rather than another surge. For example, Fannie Mae’s Home Price Expectations Survey has projected around 2.8% national home price growth in 2026.

Of course, with property values being hyper-local, there will be some markets that see much stronger gains, and some that see temporary dips. According to Zillow, the hottest housing markets for 2026 are expected to be in the Northeast and in California (Los Angeles came in at number eight). Florida, on the other hand, is looking at a market correctionafter several hot years.

Wherever you are in the country, 2026 is probably not the year to expect major market appreciation. But that shouldn’t deter you from investing.

How to Work with Modest Appreciation in 2026

If the market isn’t going to give you automatic gains, there are a few proactive steps you can take to improve ROI:

Look beyond your local market. If your market isn’t offering the return potential you’re looking for, consider investing in other markets, possibly even investing in property out of state.

Force appreciation. Rather than sitting back and expecting the market to increase home values for you, add value to your property through renovations, energy-efficient upgrades, or smart home technology.
Gain instant equity from ground-up development. A properly-managed new construction project is worth far more than the sum of the land, materials, and labor. The difference is earned equity.

Winning Real Estate Investment Strategies in 2026

Here are three key real estate investment strategies set to pay off well in the 2026 housing market.

1. Attainable Housing

Attainable housing refers to homes priced within reach of households earning roughly 70% to 100% of their area’s median income. While demand for this type of housing remains strong, supply continues to lag, creating a persistent imbalance and a clear opportunity for investors.

One creative way to tap into this niche is through value-add Tenancy in Common (TIC) projects. A TIC is an ownership structure where multiple buyers hold shared, undivided ownership of an entire property. Unlike condominiums, where each owner holds title to an individual unit, TIC owners collectively own the full building while designating specific units for personal use.

From an investment standpoint, this model allows buyers to acquire an older multi-family property, renovate and reposition it, and then sell interests to multiple TIC purchasers, often at a higher value than the building could command from an individual investor-buyer looking to rent it out.

2. Multi-Family Development

In markets where rental demand remains strong, smaller-scale multi-family development projects are likely to be especially attractive in 2026. Properties with around 6-10 units tend to move through permitting and construction more quickly than larger complexes. This means investors can get to the passive rental income phase faster. These smaller buildings are also appealing to other investors because they’re typically more affordable and easier to finance than large apartment properties.

You could sell the completed building for immediate returns, or use the build-to-rent (BTR) strategy, where you retain ownership after construction and lease out the units. This approach allows you to transition from development into long-term cash flow, creating a steady income stream rather than a one-time sale. Holding the property as a rental for a year or more also gives you the added benefit of lower long-term capital gains tax rates, to further improve your bottom line.

If you have the funds but not the experience, time, or desire to construct a multi-family building, you could invest in a multi-family built-for-you development. With this model, you outsource the development and lease-up to an experienced team. Every detail is handled for you, and you get sole ownership over the property upon completion!

3. Real Estate Syndication

If taking on an attainable housing or multi-family project feels out of reach (because of time constraints, limited capital, a lack of hands-on experience, or because you just don’t want the hassle), real estate syndication is a practical alternative.

With syndication, multiple investors combine funds to finance a single project. The project could be nearly anything, including the value-add TICs and small multi-family developments mentioned above. A professional real estate sponsormanages the entire process, from arranging financing and acquiring the property to overseeing construction and disbursing returns to investors. And because capital is pooled from multiple investors, the minimum investment requirements are extremely low compared to funding a project alone.

While syndication is often compared to crowdfunding, it typically offers a more structured and secure ownership model, making it a preferable option for accredited investors.

Invest in Residential Real Estate in 2026 with Gatsby Investment

At Gatsby Investment, we specialize in providing high-return potential real estate syndication deals to investors under any market conditions. Since completing our first projects in 2017, we’ve managed to provide average annualized returns of 22.3% to our investors. And since we take care of every detail of the project for you, your returns are completely passive!

Learn more about investing with Gatsby and leverage our experience, insight, and systems to take advantage of the 2026 housing market!

The Benefits of Investing with Real Estate Experts

There are many benefits of real estate investing, but there are also many ways to make mistakes when investing on your own.

That’s why so many investors prefer to leverage the experience and resources of the experts.

Real estate investment models like crowdfunding and syndication allow you to pool funds with other investors for a specific real estate project that is professionally managed by a team of real estate experts (called sponsors). The sponsor takes care of every detail of the deal for you, from acquisition and design to construction/renovation and the eventual resale.

If you’re on the fence about going into real estate investing alone or investing through a crowdfunding/syndication platform, consider the benefits of investing with the experts.

Access to Unique, Pre-Vetted Opportunities

Investing with the experts allows you to take advantage of their research and analysis, as well as the capital from other investors, to access real estate opportunities you might not be able to get working alone.

Consider the following benefits:

Access to off-market deals. Seasoned syndicators have long-standing relationships with brokers, developers, and planners, so they often learn about new deals even before they hit the market.

Development team in place. With their available resources, syndication companies often pursue more complex projects, like multi-family developments, which are excessively difficult for the average investor to tackle alone.
Low investment minimums. Because you’re investing alongside others, you don’t have to carry the full financial burden alone. In fact, you might be able to buy into a multi-million dollar project with as little as $25,000.
Professional due diligence. Instead of making assumptions or guessing, sponsors hire professional real estate analysts to evaluate deal viability and estimate returns. Only the deals with the best return potential are offered to investors.
Easy investing in top markets. Since you don’t have to manage the project yourself, you can invest in deals in top-performing markets, even if they’re out of state. Take Los Angeles, for example. The high prices of this in-demand market can be a barrier to entry for many investors, but the perpetual housing shortage creates unique, high-return-potential opportunities. And, thanks to the low investment minimums, these high-value properties are accessible to syndication investors!

Return Optimization Strategies

In addition to the access to unique deals, syndication investors get to lean on the systems and strategies to optimize return potential. For example, those who have invested with Gatsby Investment since the company opened in 2016 have averaged returns of over 20% per year thanks to the Gatsby advantage!

Here are some of the ways Gatsby boosts your return potential:

Scale and efficiency. A single investor might struggle to optimize a project, but sponsors who have completed dozens of projects have the systems in place to build and manage properties efficiently and effectively.

Stronger negotiating power. Through local relationships and multiple projects, sponsors can often negotiate lower rates for labor, materials, services, and even interest expenses on financing. Greater negotiation leverage improves cost savings, which maximizes cash flow and profitability.
Opportunity recognition. While the average investor dabbles in real estate part-time, syndication analysts are immersed in the market all day, every day. So they are better prepared to recognize patterns and trends that can enhance performance.
Aligned incentives. Most syndication companies invest alongside their clients and only profit when the project succeeds. This business model creates shared goals between the investors and the sponsor and helps keep sponsors accountable for optimizing returns.

Risk Mitigation and Headache Reduction

While sponsors are providing access to unique deals and optimizing return potential for investors, they’re also saving investors from many of the risks and headaches associated with real estate investing.

Here’s how your sponsor can protect your investment and make your life easier:

Risk reduction through experience and systems. Experienced companies have established processes for construction oversight, tenant management, compliance, and market adjustments. This experience reduces the likelihood of costly mistakes.

Professional management. As the investor, you don’t have to handle landlord responsibilities like screening tenants, supervising contractors, arranging financing, securing permits, or ensuring legal compliance. Everything is managed by knowledgeable professionals.
Local market expertise. When a sponsor specializes in a specific geographic market, they develop an understanding of when to buy, what to build, and which neighborhoods are poised for growth. This reduces the risk of buying or building a property that doesn’t meet local buyer/renter demand.
Clear communication and structured reporting. Professional syndicators offer financial reporting, tax documentation, asset updates, and transparent performance metrics. This keeps you in the loop without overwhelming you with unnecessary details.
No additional costs. When you invest with a syndication company, you’re never required to pay more money into the project. This is very different from direct ownership, in which you’re responsible for all ongoing property expenses, even if the rental income doesn’t cover the costs.
No time or experience required. Since the sponsor handles every detail of the project for you, you don’t need to have any real estate investing experience or spend your valuable time prospecting for deals or managing properties.

Invest with the Real Estate Experts at Gatsby Today!

Gatsby Investment is a well-established real estate syndication platform with a 100% profitable track record. We specialize in the Los Angeles market, developing housing units that are in high demand by both renters and investor-buyers. Our strategies are tailored to LA, taking advantage of local zoning changes that allow us to purchase affordable lots and construct small multi-family structures quickly and efficiently to maximize potential returns for investors.

If you want to build a real estate portfolio without the risk or hassle of buying or building a multi-family property on your own, join the thousands of investors who trust Gatsby to produce strong returns. Learn more about investing with Gatsbyand explore our pre-vetted real estate investment opportunities today!

Is a 50-Year Mortgage a Good Idea?

Over the last month, Donald Trump has been floating the idea of a 50-year mortgage as a means of increasing housing affordability. According to the President, “All it means is you pay less per month. You pay it over a longer period of time. It's not like a big factor. It might help a little bit.”

Is this correct? Could a 50-year mortgage option help ease the housing affordability crisis? And what could it do to the wider real estate market? And how could this affect real estate investors as well as homebuyers?

Is a 50-year mortgage a good idea?

Comparing a 30-Year Mortgage to a 50-Year Mortgage

To see the real impact on mortgage payments and total interest expense, let’s compare a 30-year mortgage and a 50-year mortgage side by side.

Assuming a purchase price of $425,000 with a 20% down payment and a fixed 6% interest rate:

A 30-year mortgage would cost $2,038.47 per month (not including taxes or insurance) and would incur a total interest charge of $$393,849.84.

A 50-year mortgage would cost $1,789.78 (not included taxes or insurance) and would incur a total interest charge of $733,865.78

Therefore, a 50-year mortgage could save you around $248.69 per month, but would cost $340,016.31 more in total interest expense.

However, there are a few issues with this calculation:

Interest rates on longer loan terms are typically higher. So if a 30-year fixed is 6%, you might have to pay 6.5% for a 50-year loan. This would result in a $1,916.64 mortgage payment and a total interest expense of $809,982.45.
You’re not likely to retain the loan for the full 50-years. There’s a very real chance that you would sell the property or refinance the loan before the end of the loan term, so it’s unlikely that you would repay the full interest amount (although refinancing incurs fees and can reset the loan term to a fresh 15, 30, or 50 years, which could result in even greater overall expense, even if you secure a lower interest rate).
This calculation does not reflect the slower rate of equity accumulation in a 50-year loan. The amortization schedule of all mortgages allocates more of the early mortgage payments to interest than to principal. The longer the loan, the longer it takes to make any real dent in the principal loan balance. For example, on a 30-year mortgage, after five years of mortgage payments, your loan balance would be $24,071.57 from where you started. On a 50-year mortgage (even if the interest rate were the same as the 30-year), after five years of mortgage payments, your balance would only be $6,385.01 less than when you started. So you would have a riskier debt-to-equity ratio and less equity to borrow against or cash out in the event of a sale.

Potential Benefits of a 50-Year Mortgage

Here are the reasons why some Americans are in favor of the 50-year mortgage plan:

Lower monthly mortgage payments. Depending on the size of the loan, you could save a few hundred dollars per month by going with a longer loan term.

Lower barrier to entry. The lower mortgage payments may help more buyers qualify for their first home loan.

Potential Downsides of a 50-Year Mortgage

Opponents of the 50-year mortgage plan point out several possible disadvantages of the strategy, including:

Higher overall interest expense. A 50-year loan would add hundreds of thousands of dollars to the cost of the loan.

Longer debt repayment period. You would be less likely to have your home paid off by retirement, when your income may dip as you pull from retirement savings. And fewer homeowners would be able to repay the loan during their lifetime, which could lead to generational debt.
Slower equity building. Because so much of the early payments goes toward interest, it could take decades to build substantial equity.
Doesn’t treat the cause of the affordability crisis. The housing crisis is a supply and demand issue. Until we build more housing units to meet the demand, housing will continue to be unaffordable.
Home prices could actually rise. Lower monthly payments increase buyer purchasing power, which could drive home prices up rather than make homes more affordable.
Housing turnover could fall. With equity taking so long to build, homeowners may need to stay put longer, which can stagnate the housing market.

Sustainable Real Estate Investing Made Easy

A 50-year mortgage could help individual homebuyers get on the property ladder. But the cost of doing so would be extremely high. And if the 50-year mortgage were to become a common alternative to 15 and 30-year mortgages, it could result in higher home prices, followed by lower turnover, which is bad news for everyone operating in and around the housing market.

Gatsby Investment has always been in favor of sustainable real estate growth. We believe in generating strong returns for investors by adding value to the market through new developments, rather than restricting inventory to artificially inflate property values.

Our real estate investment strategy is to create housing units in areas with persistent shortages (like Los Angeles). Our multi-family developments, for example, add much-needed housing in in-demand neighborhoods. These developments often generate double-digit returns for our investors while helping to ease the local housing shortage. This model of sustainable growth prevents prices from rising out of control to the point of driving locals out of the area.

If you want to be part of real housing market solutions while growing your real estate portfolio, join in a Gatsby Investment project! Our real estate syndication deals allow you to access unique opportunities with low investment minimums and no prior experience. We have a team of real estate experts to handle every aspect of the acquisition, construction, stabilization, and eventual resale for you.

Explore our pre-vetted real estate investment opportunities today for strong return potential and a stronger housing market!

The Benefits of Building with Gatsby

Whether you’re looking to rebuild your home after the 2025 wildfires or develop a new multi-family rental property for your real estate portfolio, Gatsby’s Built-for-You Program is brimming with benefits!

But before we explore those benefits, let’s explain what the Built-for-You Program is and how it works.

What Is Gatsby’s Built-for-You Program and How Does It Work?

The Built-for-You Program is a flexible plan that lets you outsource the development of your new Los Angeles-based real estate project to the experts here at Gatsby Investment.

The project could be a single-family home for you, a single-family home for renting out, or a small multi-family building (with up to 10 units, depending on the lot’s potential and your preferences).

We take care of every step of the home development process for you, including:

Finding a suitable lot (if you don’t already own the land)
Working with skilled architects to design the right structure to meet your needs and wishes
Securing permits
Prepping the lot for development
Overseeing construction (which is completed by our experienced, reliable builder partners)
Working with designers for ideal finishes
Securing the Certificate of Occupancy (CofO)
Filling the completed unit(s) with tenants (if the property is to be rented out)
Turning over the completed project to you

The Benefits of Building with Gatsby

Whether you’re building a home to call your own or an investment property, you’ll benefit in several important ways from building with Gatsby:

Exclusive market access. Our industry connections often send off-market opportunities our way, so we can help you get a good piece of land under favorable terms.

Passive development. We handle the entire development process, shielding you from the stress and time typically required during new construction.
Strong property values. Building from the ground up lets us look for opportunities to increase the property’s value at every stage of development.
Cost savings. Gatsby maintains professional relationships with some of the best architects, builders, contractors, and lenders in LA. As repeat customers, we earn lower prices on materials and labor and lower interest rates on loans.
Quality assurance. We hold our team and our partners to the highest construction standards and make sure your new build is compliant with the constantly changing regulations.

If Gatsby is building your personal home, you can also count on:

Expert guidance with empathy. Our hearts are tied to our homes, so naturally, building a new home is as much an emotional decision as a financial one. We’re here to provide the analytical information needed for sound decision-making while also leaving room for the sentimental journey of saying goodbye to an old home and hello to a new one.

Flexibility. Whether you’re building from scratch on raw land, tearing down to rebuild, or restoring a home after fire damage, we work with you to meet your needs and fit your budget.
Design options. Choose from pre-design templates or create a fully-custom home design to reflect your preferences and lifestyle. We even offer pre-fabricated and modular homes for those who value efficiency, affordability, and faster timelines.

If Gatsby is building your new investment property, you’ll also benefit from:

Higher ROI potential. You get to leverage all of Gatsby’s expertise, industry connections, and proprietary systems to efficiently build high-demand units to maximize the potential return on investment.

Sole ownership for more control. While our syndicated investment opportunities allow investors to buy into pre-vetted deals and share in the profits, our Built-for-You Program allows you to maintain complete control over your new asset without sharing equity.

Expert lease-up. Gatsby works with professional property managers to find qualified tenants for your new property. We fill the units with rent-paying tenants, so you get a cash-flowing property!
Savings on real estate agent costs. We transfer the property to you directly, saving the traditional 2.5-6% real estate agent fees.

Save Money, Time, and Hassle by Outsourcing Development to Gatsby

If you’re financially ready to build a new home or investment property in LA, but don’t have the time, energy, experience, or desire to handle the development yourself, save yourself the hassle by outsourcing development to Gatsby.

With our Built-for-You Program, we take all the pressure off you, so you can enjoy the process at whatever level of involvement you’re comfortable with (including totally hands-off!). Plus, you get to take advantage of the cost-saving, value-optimizing systems we’ve used to successfully develop over 100 buildings in Los Angeles.

Contact us today to discuss your needs and goals. Our knowledgeable representatives are looking forward to chatting with you.

Los Angeles Real Estate Outlook 2026 and the Gatsby Advantage

As we close 2025 and look ahead to 2026, we’re seeing some investors sitting on the sidelines due to interest rates that remain over 6%. Meanwhile, those who invest with Gatsby are still enjoying strong returns by combining unique local opportunities with tactical shifts.

So what is Gatsby doing to maximize return potential despite today’s interest rates? And why is Gatsby so excited about the upcoming market conditions?

Come peek behind the curtain to see Gatsby’s 2026 real estate investment strategy and find out why we believe this could be one of the most promising periods in recent years to invest in Los Angeles real estate.

2026 Market Conditions that Favor LA-Area Investors

Let’s start by explaining where the market is today and where trending data shows the market is headed in the next year, as well as the opportunities those conditions create.

1. Buyers Hold the Negotiating Leverage

Los Angeles is currently in a buyer’s market. There are more sellers than buyers (partly due to the interest rates, but also because of the high price points in LA). This is a rare opportunity that typically comes around only once a decade. With fewer buyers, there is less competition, which means buyers have more leverage in negotiations.

Because of this temporary slowdown, buyers can acquire properties at more favorable prices under more favorable terms.

At Gatsby, we’ve been able to negotiate deals that simply weren’t possible a few years ago. Over the last few months, we’ve purchased land at 10-20% below market value, creating built-in equity from day one. “Buying right” positions us to sell at peak pricing when conditions swing back to a seller’s market.

But we take this a step further. Rather than buying existing properties and waiting for the market to do the work of growing the value through appreciation, we force appreciation by adding value. We build new structures from the ground up, transforming underutilized land into high-quality housing in desirable neighborhoods. This hands-on approach allows us to control costs, maximize equity, build to local demand, and deliver stronger returns regardless of where we are in the real estate cycle.

2. Rising Rental Demand Drives Long-Term Appreciation Potential

Los Angeles has always been in high demand thanks to the year-round sunshine, career opportunities, and regional amenities. It’s also long been a city of renters, with only around 37% of Angelinos owning their homes. And the rental demand is projected to climb over the coming years as a result of investment in city infrastructure, new job creation, and intentional multi-family development.

With major global events such as the FIFA World Cup in 2026, the Super Bowl in 2027, and the Olympic Games in 2028, Los Angeles is poised for renewed economic growth and unprecedented international visibility. These events are already driving billions of dollars in infrastructure upgrades and revitalization projects across the city. From expanded public transit and airport modernization to housing incentives and beautification efforts, Los Angeles is actively preparing to welcome the world. These initiatives will not only enhance the city’s livability and appearance but also strengthen property values in key neighborhoods.

These investments are also creating new job opportunities in key sectors like construction, hospitality, transportation, and logistics. With job growth comes population growth. And a growing population requires more housing.

3. The Persistent Housing Shortage Creates Opportunities for Developers

Even while there are comparatively fewer homebuyers in today’s market, the demand for housing in LA has remained extremely high, often fueled by renters. And while the rental demand is expected to rise, it’s important to remember that we’re already at a deficit because of the perpetual housing shortage.

Recognizing the need for more housing (particularly more affordable housing options), city leadership is prioritizing housing development and urban renewal to enhance the safety, cleanliness, and livability of our communities. With recent zoning law changes, it is now possible to develop small, unobtrusive multi-family buildings on certain lots that were formerly zoned for single-family. This creates an incredible opportunity for developers of small, multi-family structures. And Gatsby is fully invested in this unique opportunity.

Our properties perform especially well because they align with what the Los Angeles market needs most: larger, modern homes ideal for shared living and family occupancy. These layouts offer tenants affordability and flexibility while creating strong, stable income potential for investors.

How Gatsby Is Positioned for Success in 2026

Gatsby’s investment approach for 2026 is guided by conservative financing and strategic flexibility.

First, we focus on projects priced below the city’s mansion tax threshold, which protects investors from added costs and ensures a wider pool of buyers when we’re ready to sell the completed project. This gives us a valuable competitive advantage.

Our build-to-rent strategy also gives us flexibility. We develop each property from the ground up, adding value through construction, then hold the property for passive income. Then we sell the stabilized asset at a premium when market conditions are ideal.

This model positions investors to benefit from both short-term equity gains and long-term appreciation while keeping risk carefully managed through disciplined project selection. Plus, by holding the asset as a rental for over 12 months, the proceeds from the eventual sale qualify for the lower long-term capital gains rates, further protecting investors’ profit margins.

Gatsby’s Proven Advantage Through Experience and Scale

As one of Los Angeles’s most active developers of small multi-family properties, Gatsby benefits from economies of scale and established industry relationships. Our long-standing partnerships with contractors, architects, brokers, and lenders allow us to secure better pricing and rates, maintain quality, and keep projects on schedule. By building in volume, we are able to negotiate better material and labor costs, which contribute to stronger margins and increased project efficiency.

As the largest developer of “double duplex” projects in Los Angeles, Gatsby plays a key role in setting market comparables. In many cases, our only sales comps are other projects we developed. Corning this niche market allows us more control over the financial outcomes of our projects.

Our established reputation in the market also gives us access to the best opportunities. Because we move quickly and reliably on new opportunities, we are often the first call when off-market deals arise. This allows us to secure prime assets before they are even brought to market.

By building efficiently and strategically, we deliver modern, high-demand housing that meets the needs of today’s renters and generates strong returns for our investors.

History has shown that Gatsby performs strongest during times of uncertainty. During previous market disruptions, such as the COVID-19 pandemic, our disciplined strategy allowed us to continue building, and every deal we acquired during that period sold with strong demand and competitive bidding.

We believe that the projects we are acquiring and developing today, priced below the mansion tax threshold and positioned for flexibility, are ideally situated to benefit from this transformation and perform exceptionally well in the next market cycle.

How to Invest with Gatsby

Gatsby offers multiple ways to invest (including investing as an individual, entity, or even through a retirement account) to meet your needs.

If you are an accredited investor, looking for a simple entry point into the LA real estate market, join our real estate syndication projects. With our syndication model, you are able to invest anywhere from $25k-$250k into each deal and co-own the property with other investors. Gatsby manages each step, while you can track everything via the transparent online dashboard. You can even diversify across multiple projects and build a fully passive portfolio.

For investors who are looking to put larger capital to work or are interested in sole ownership, explore our built-for-you model. You get the same service and experience as the syndicated offerings, but without sharing equity with other investors. You own 100% of the project. Once construction is complete, ownership and management fully transition to you, enabling you to generate passive rental income and benefit from long-term appreciation as the sole owner.

Don’t let today’s interest rates keep you from the many benefits of real estate investing. Today’s market conditions are creating unique opportunities in the LA area for those who recognize them and take action.

Explore our current investment offerings or speak with a member of the Gatsby team to learn more.

3 Reasons to Stabilize a Rental Property Before Selling

When you’ve invested significant time and money into developing or renovating a rental property, it can be tempting to sell as soon as construction is complete. At that point, you’re probably excited to recoup your investment and (assuming everything went well) a tidy profit! But not so fast…

If you want to maximize return potential, there’s another phase to complete: stabilization.

Stabilization is when your units are fully occupied and generating stable recurring income. Yes, it can take some time to market your newly developed/renovated units for rent, screen for qualified tenants, and get everyone moved in. But the benefits can’t be ignored.

So let’s look at those benefits to explain why adding the stabilization phase is likely to pay off.

3 Reasons to Stabilize a Rental Property Before Selling

Here are the top three advantages of leasing up your new units before selling your completed rental property.

1. Wider Buyer Pool at a Higher Price Point

Vacant buildings appeal to a very small number of opportunistic investor-buyers. Without renters, a building (even a newly constructed or renovated one) may be viewed as speculative. The buyer assumes the risk in filling units and establishing an income history. This can also make it more difficult for buyers to secure the financing needed to complete the purchase, as lenders may be less willing to assume some of the risk.

But once the property has proven occupancy and documented rent rolls, it’s considered a performing asset, which typically attracts more buyers (and their lenders). Most investors, including institutional investors, passive investors, and 1031 exchange buyers, prefer stabilized assets because they offer immediate, predictable cash flow.

Additionally, by stabilizing the property, you can lean on the income approach to valuation when setting the asking price. This approach uses the rental income generated by the property to establish its current market value. In many cases, the income approach offers a higher value than the market approach (which relies on recent sales of comparable properties and can be tricky for unique properties without many comps) or the cost approach (which calculates the current land value plus the cost to replace the structure).

So you have two factors working in your favor to earn you a higher sales price: increased demand plus a higher valuation, driven by proven rental income.

2. Lower Capital Gains Tax Rates

One of the biggest financial advantages of stabilizing your property before selling is the potential to lower your capital gains tax. In the US, profits from assets held in service as a rental for less than a year are taxed as short-term capital gains, which are subject to your ordinary income tax rate, potentially as high as 37%, depending on your tax bracket. But properties held in service as rentals for more than 12 months qualify for long-term capital gains tax rates, typically ranging from 0% to 20% depending on your taxable income level.

Let’s say you invest $800,000 to purchase and renovate a small duplex, and then sell it ten months after acquisition for $1,000,000. That $200,000 profit would be taxed as short-term capital gains, which are treated as ordinary income because you held the asset for less than a year. If this gain falls into the 35% tax bracket, you’d owe $70,000 in taxes, leaving you with an after-tax profit of $130,000. Not bad for ten months of work! But what if you hold and stabilize the duplex for at least 12 months before selling?

Even if the sales price were to be the same (which is unlikely because the increased buyer pool and income-based valuation would likely drive the price up, but we’re focusing on just the taxes with this example), your $200,000 profit would be taxed at the lower long-term capital gains rates. At a 15% tax rate, your after-tax profit would be $170,000. That’s a $40,000 difference simply for holding and stabilizing the property before selling. Plus, you have rental income during the hold period, which should cover holding costs while creating passive income!

3. Rental Income for a More Flexible Exit Strategy

Finally, a stabilized property gives you breathing room. With tenants in place and cash flow coming in, you’re not under pressure to accept the first offer that comes along. You can afford to wait for the right buyer.

That steady passive income stream creates a more flexible exit strategy. You can sell when market conditions are favorable rather than when your budget forces your hand. Even if the market temporarily dips (always be prepared, right?), you can simply hold and continue earning rental income until the market rebounds. You could even refinance the stabilized property to pull out equity while retaining ownership, as is a staple of the BRRRR method.

How Gatsby Investment Leverages Hold Periods for Investors

Gatsby’s multi-family built-to-rent investments use these advantages of stabilization to benefit our investors. Once development is complete, the property is stabilized through at least 12 months of in-service rental, so that you, as an investor, get the benefits of a higher sales price, lower capital gains tax rates, and potential rental income while we search for the right buyer.

By investing in one of our syndicated real estate deals, you don’t have to worry about investing any of your own time or effort into the project. We handle every detail for you, using our experience, proprietary systems, and local connections to boost your profit margins. Plus, with low investment minimums, investing in unique real estate deals is hyper accessible to all accredited investors.

Explore Gatsby’s available investment opportunities online or schedule a call with a dedicated investor relations specialist to discuss your financial goals today!

Why Build-to-Rent Has Become a Top Choice for Gatsby Investors

Over the past year, Gatsby Investment’s Build-to-Rent projects have become one of the most popular opportunities on our platform, and for good reason. This model combines the equity growth of new development, the stability of rental income, and the tax advantages of long-term gains, all in one strategic investment.

A Proven Strategy Designed for Today’s Market

The Build-to-Rent model is designed to provide investors with multiple layers of value in a relatively short timeframe. It combines the upside of multifamily development with the consistency of rental income, a favorable tax position upon exit, and the ability to sell at a prime sales price that maximizes returns for our investors.

What makes this strategy especially effective right now is timing. The market is currently in a buyer’s phase, which allows Gatsby to secure projects at favorable prices. By the time today’s Build-to-Rent projects reach their planned exits, conditions are expected to shift toward a seller’s market. This positions our investors to benefit from buying at the right time and selling at a stronger one.

Here is how it works:

Ground-up construction: Investors build equity during the development phase, typically around 18 months.
Rental income: Once construction is complete, the property is leased to tenants, generating quarterly rental distributions.
Strategic sale: After a 12-month rental period, the stabilized property is sold at an optimal market price, helping to maximize overall investor returns.

Why Investors Choose the Build-to-Rent Model

The Build-to-Rent model continues to attract investors for its balanced approach to growth, income, and flexibility.

Key advantages include:

Multiple layers of return: Equity growth, rental income, and tax benefits.
Short overall timeline: Most projects are completed in approximately 2.5 years.
Stronger resale potential: Stabilized assets appeal to more buyers since they are already occupied with tenants and are easier to finance.
Flexibility on exit: Because the property is income-producing, we have flexibility on timing the sale without high carrying costs during the marketing period.
Tax advantages: Profits are treated as long-term capital gains, which help investors keep more of their returns after taxes.

Explore Build-to-Rent Opportunities

Investors can explore current Build-to-Rent investment opportunities starting at $25,000.

About Gatsby Investment

Gatsby Investment specializes in ground-up real estate development projects across Southern California, offering accredited investors access to institutional-quality opportunities with transparent structures and professional management. Learn more at Gatsby Investment.

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A History of Strong Returns

Since our founding in 2016, Gatsby Investment has successfully acquired over 100 properties with a 100% profitable track record. View completed deals

500+

Active investors on the platform

22%

Average annualized net return to investors from 2016–2024

100

Successfully acquired deals