Single-Family Rental Information

If you are looking to build a real estate portfolio and hold properties for the long term, without the hassle of managing property operations yourself, our single-family rental investment option is a great fit for you.

With a small upfront investment, you can own a piece of a single-family rental property. This allows you to take advantage of tax benefits, collect passive rental income, and benefit from the property’s appreciation over time.

Investors will receive their share of the rental income quarterly, at which point you have the option to reinvest the proceeds into new properties to quickly build a diverse real estate portfolio.

This is a five-year investment, with the option to renew the investment every five years.

The Los Angeles residential rental market shows consistent growth in both rental rates and property values, making this a lucrative investment option.

The benefits of investing in single-family rentals

Stability.

Real estate is less volatile than the stock market and has historically outperformed the S&P 500.

Cash flow.

Tenants pay monthly rent to help cover property expenses and can provide profit to the investors.

Amortization.

Tenants help pay down the mortgage debt, which increases your equity and ultimately creates long-term wealth.

Appreciation.

Investors benefit from the growth of real estate values over time.

Tax advantages.

Claim deductions on your income taxes for your real estate holdings.

Deal-by-deal control.

Unlike many other real estate crowdfunding investments that simply offer a share in a fund of several unknown properties, Gatsby allows you to view the details for each individual property you want to invest in (including the address and financial breakdown).

Ownership of a piece of LA real estate.

With Gatsby, you don’t just own debt-equity; you actually own a stake in the underlying real estate.

The process of single-family rental investing

At this stage, the remodel of the home has already been completed. We have filled the home with creditworthy tenants, stabilized and appraised it, and secured a loan. We then convert the investment from a single-family renovation to a single-family rental investment and offer the original investors the option to exit the investment or to continue their investment into the ongoing rental. If any of the original investors decide to exit, we will offer their shares to new investors on a first-come, first-served basis.

Gatsby Investment takes care of the full rental process from start to finish. We negotiate financing options, secure the loan, oversee the property management company, handle the accounting services, quarterly investor distributions, and Schedule K-1 filings.

Two ways to get into a single-family rental investment

  1. You invest early during the single-family renovation phase of the investment. After the renovation is complete and the property is stabilized, you’ll have the option to continue into a five-year rental investment.
  2. You invest during the rental phase. This is only possible if investors in the renovation phase decide to sell their shares after the renovation is complete. If shares are available, investors can invest in the single-family rental directly on a first-come, first-served basis. Please note that if all investors from the renovation phase decide to continue their investment into the rental phase, direct rental investments will not be available.

The option to exit or continue for another five years

Single-family rentals are a five-year investment. Three months before the end of a five-year period, we will get a new appraisal and may refinance the property based on the interest rate and appreciation growth. When the appraisal is complete, we will contact investors to give you the option to sell your shares or to continue into another 5-year investment. Depending on the new financing, Gatsby may pull money out of the deal and disburse funds back to the investors that continue the investment. The process is then repeated the same way every five years.

Investment stages

To bring you the most lucrative single-family rental investment opportunities, Gatsby follows market trends closely and is always on the search for new deals. We want to keep you in the loop on potential investments as we find them.

Our projects follow three investment stages:

  1. Coming soon. A sneak peek at the potential deals we’re lining up for the future.
  2. Pre-investment. A no-cost, no-obligation way to reserve your spot in an investment type until we have secured a property.
  3. Open investment. The project is open to investors. You can transfer your investment funds and confirm your ownership stake in the property right away.

Do you want to learn more about our investment opportunities?