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.

Why Buyers Choose Gatsby Multi-Family Properties

Real estate investors today are increasingly looking for properties that offer a combination of immediate income, long-term stability, and tax efficiency.

Gatsby Investment develops modern, income-producing multi-family properties designed to meet these objectives, particularly within the Los Angeles market.

This article explains what makes these properties attractive to buyers and why they continue to perform well.

Stabilized, Income-Producing Assets

One of the biggest challenges in acquiring rental property is uncertainty. Vacancy, leasing timelines, and tenant quality can all impact performance.

Gatsby properties are delivered fully leased and stabilized, meaning tenants are already in place at the time of purchase.

For buyers, this provides:

Immediate rental income
Proven occupancy and rent levels
A smoother transition into ownership
Reduced lease-up risk

Instead of acquiring a property that still needs to be filled, buyers step into an asset that is already performing.

New Construction with Lower Maintenance

Older apartment buildings often come with deferred maintenance, outdated systems, and ongoing capital expenditure requirements.

Gatsby developments are built from the ground up using modern materials and systems, which can help reduce early ownership costs.

Rather than including high-cost amenities that increase operating expenses, Gatsby focuses on practical features tenants consistently value:

Functional layouts
Private outdoor space
Parking
Modern appliances and finishes
Low-maintenance common areas

This approach helps create properties that are easier to operate while maintaining strong tenant appeal.

Designed for Real Rental Demand

In Los Angeles, many apartment buildings are built around smaller unit formats such as studios or one-bedroom units.

Gatsby developments take a different approach by focusing on larger, shared-living layouts that reflect how people actually live in high-cost housing markets.

Typical features include:

Three- to five-bedroom units
Private bedrooms with ensuite bathrooms
Spacious shared living areas
In-unit laundry
Modern finishes and high ceilings

These layouts appeal to a wide range of renters, including:

Young professionals
Roommate groups
Families
Budget-conscious renters

By aligning with real market demand, these properties tend to maintain strong occupancy and consistent rental performance.

The Advantage of Smaller Multi-Family Properties

Gatsby focuses on smaller multi-family buildings, typically 4 to 6 units.

This segment of the market offers several advantages:

More accessible purchase prices
Easier financing options
More manageable ownership
A broader pool of buyers at resale

Because these properties are within reach for a larger group of buyers, they often maintain strong demand and liquidity compared to larger apartment buildings.

Built in Los Angeles, Designed for Its Market

Los Angeles remains one of the most supply-constrained housing markets in the country.

Several long-term trends continue to support rental demand:

High cost of homeownership
Limited supply of new housing
Strong employment centers
Continued demand for modern living spaces

By focusing on well-located neighborhoods and renter-driven design, Gatsby developments are positioned to perform within this competitive market.

Tax Advantages

In addition to rental income, multi-family real estate can offer powerful tax advantages.

Strategies such as cost segregation may allow buyers to accelerate depreciation and offset a portion of their taxable income, improving overall investment efficiency.

Gatsby properties are particularly well suited for this because they are offered at more accessible price points, allowing individual buyers to benefit from tax strategies that are often associated with larger real estate investments.

For many buyers, these benefits can enhance cash flow and overall returns while owning an income-producing asset.

1031 Exchange Considerations

A 1031 exchange allows investors to defer capital gains taxes by reinvesting proceeds from the sale of one investment property into another.

Because Gatsby properties are:

Newly constructed
Fully leased
Easier to finance
In an accessible price range

They often serve as strong replacement properties for investors transitioning out of older or higher-maintenance assets into more stable, lower-maintenance, income-producing properties.

A Smarter Approach to Multi-Family Ownership

Buying a multi-family property is not just about acquiring real estate. It is about selecting an asset that performs consistently, operates efficiently, and aligns with long-term financial goals.

Gatsby properties are designed with these objectives in mind, combining:

Stabilized income
Modern construction
Strong rental demand
Strategic tax advantages

For buyers seeking a more predictable and streamlined ownership experience, these factors can make a meaningful difference.

Interested in Acquiring a Gatsby Property?

If you are interested in purchasing a completed Gatsby multi-family property or would like to explore upcoming opportunities, you can view available properties or connect with our team to learn more.

What I Learned About Real Estate Investing from Moving 16 Times in 20 Years

Yes, I’ve moved 16 times in 20 years. I’m married to a video game developer, and we have a history of moving every time he finishes a game so he can start a new project with a new studio.

We’ve bounced around Southern California, Arizona, the Midwest, and Europe, giving me a unique perspective on real estate investing. Plus, as a professional content writer in the personal finance space, I have a clear view of real estate’s role in a diversified portfolio.

After navigating so many moves as both a homeowner and investor, I’ve identified three key lessons that can help any investor make smarter real estate decisions (no matter where life takes you!)

1. You Can Invest without Owning Your Own Home

This may seem obvious, but I see so many investors avoiding real estate investments because they feel that owning a home is the entry point to this asset class.

But when you move frequently, renting often makes more sense than buying. You can rent your primary residence while investing in real estate (through rental property acquisitions or via the multiple ways to invest in real estate without buying property).

Real estate can even be used as a vehicle for renters to save enough for the down payment on their home. Through low-investment-minimum options like REITs (real estate investment trusts), you can start investing in real estate on any budget and use the magic of compounding to grow your funds far faster than you could save enough for a down payment.

Don’t let your renter status keep you from capitalizing on the housing market!

2. Direct Ownership May Be Overrated

I’ve owned multiple single-family rentals in Los Angeles and San Diego Counties. While we lived in the US, our strategy was to purchase a home as a primary residence, using favorable primary residence financing, live in the home as long as we could, then place it in service as a rental when we had to relocate for work (where we would repeat the process).

While this was a lucrative strategy, I didn’t love the hassle of being a landlord. With a background in luxury property management, I was able to manage the rental portfolio myself, screening tenants, handling renewals, and addressing maintenance requests, even while living a few hours away. But it did take more time and contractor connections than I expected.

Once we moved abroad, I chose to hire a local property manager who could serve the residents better than I could, given the distance and time difference. While this lightened the load, I am still responsible for many decisions, including approving tenants, lease renewal offerings, and maintenance contracts, based on my review of quotes collected by the property manager. Of course, as the owner, I am still financially responsible for all rental property expenses. I cover the mortgage, maintenance emergencies, and property management fees, even if the rent is late or the unit is vacant.

If you love being a hands-on property owner, direct ownership may be a good fit for you. The rest of us should explore other options.

3. Real Estate Syndication Offers More Benefits with Fewer Risks

I first became acquainted with real estate syndication through my work as a finance writer. And I fell instantly in love.

Syndication pools funds from multiple investors to finance a specific real estate project (a rental, a new development, or anything in between). The project is entirely professionally managed, so investors don’t have to invest any time or energy in supervising the property. You don’t even have to go out and source properties yourself; the sponsor presents you with pre-vetted deals. So you just choose which project(s) you want to invest in, wire the funds, and track the progress of your investment online!

Here’s why syndication is so brilliant:

Multiple investors mean lower investment minimums. You can buy into a multi-million dollar deal for as little as $25K.

Professional management means purely passive returns. Your syndication sponsor handles every detail, so you don’t have to spend any of your time on the project. This also means you can invest from out of state or even from abroad (so you’re not limited by your local market conditions).
You get access to next-level deals. For example, I would never have the time or skill to manage a multi-family ground-up development on my own. But with syndication, I can invest in this type of project without any experience. And without shouldering the cost alone.
You still own equity. You become a limited partner in the company that owns the property, so you hold a legit ownership claim to the equity.
There are no ongoing expenses for investors. Once you place your investment, the sponsor becomes financially responsible for ongoing property expenses. It’s their job to allocate rental income to cover vacancy losses, maintenance, and emergencies.
Sponsors have the experience, systems, and connections to maximize return potential while minimizing risk. You get to leverage your sponsor’s resources for better outcomes.

So, what’s the downside?

The main downside of syndication is that you have to be an accredited investor to access it, so those who don’t meet the SEC’s income or net worth requirements don’t qualify. There are a few other potential cons of syndication to consider, such as the lack of direct control over the property and the exit strategy limitations (you typically have to commit funds for the duration of the project, which could be 12-60+ months, depending on the project type).

Why Gatsby is My Go-To Syndication Platform

As a finance writer, I’ve done deep dives on multiple syndication platforms. And there’s only one I choose to work with: Gatsby Investment.

Here’s why I personally choose Gatsby:

History of impressive returns. Over the last decade, Gatsby has provided average annualized returns of 22.3% to investors. They also have a 100% profitable track record.

The strong LA-focused niche. Gatsby specializes in developing small multi-family structures in Los Angeles. The ongoing LA housing market shortage means there is consistent local demand for this property type. And with zoning law changes, there is more opportunity for multi-family development.
The people behind the business. Syndication requires that you trust the people managing your investment projects. Dan Gatsby and his team continuously advocate for their investors, their builders, and the LA community. And Gatsby invests alongside investors, aligning incentives to maximize returns for everyone.

Whether you’re a digital nomad who’s always on the move, a working parent who doesn’t have time to manage a rental portfolio, or a retiree who simply doesn’t want to shoulder the expense of direct ownership, real estate syndication with Gatsby Investment may be the right fit for you. I highly encourage you to explore syndicated investment opportunitiestoday!

Introduction to Multi-Family Build-Rent-Sell for Investors

Many real estate investors inadvertently limit themselves, focusing on traditional investment types like single-family home rentals and flips. But these classic investment models can leave you open to local market downturns, vacancy risk, and limited potential. That’s why experienced investors start looking for assets that combine growth, income, and operational efficiency in a single play.

Multi-family build-rent-sell captures the upside of ground-up development before transitioning into a stabilized, income-producing asset designed specifically for long-term rental demand.

Instead of buying aging inventory and renovating it, you can create a purpose-built rental property optimized for modern tenants, lower maintenance, and stronger unit economics from day one.

Here’s what you need to know about multi-family build-rent-sell.

What is Multi-Family Build-Rent-Sell?

Multi-family build-rent-sell (also known as build-to-rent or B2R) is a property with more than one dwelling unit, built specifically to be held as a long-term rental.

Multi-family BRS can include new construction duplexes, triplexes, four-plexes, or apartment buildings with 5+ units.

Build-Rent-Sell vs. Build-To-Sell

Unlike BRS properties, BTS buildings are constructed with the intention of selling upon completion. In that case, the developer looks for a single buyer (often an institutional buyer, but it can be a partnership or individual as well) to take ownership of the newly constructed project.

Compared to BTS, BRS offers a few advantages. Namely, BRSs get to take advantage of both the forced appreciation of the construction phase and the cash flow and appreciation of the holding phase. BTR also offers additional tax advantages through the lower long-term capital gains rates on the proceeds from the sale (when the property is held in service as a rental for at least one year before the property is sold).

BTS properties, on the other hand, allow investors to get in and out of a deal more quickly, avoiding ongoing property management responsibilities and freeing up capital for the next project. Having said that, capital can be released from a BRS under certain conditions. For example, you might perform a cash-out refinance after lease-up to pull your initial investment capital out of the deal without selling.

Multi-Family vs. Single-Family

Compared to single-family, multi-family tends to cash flow better as there are more units to bring in rental income. Multi-family is also more cost-effective because you can have multiple units sharing one lot (as well as sharing walls and roofing in many cases), which reduces the cost per unit. And it’s a more efficient way to scale your portfolio since you can construct multiple units at once.

However, single-family BRS has an advantage in affordability and manageability. It typically takes less capital to construct a single-family home compared to a multi-family home, and managing one unit is naturally simpler than managing multiples.

Pros and Cons of Multi-Family BRS for Real Estate Investors

While all real estate investments offer certain benefits to investors, multi-family BRS is especially advantageous in these key areas:

Predictable, diversified income. With multiple units, you don’t have to rely on a single tenant for 100% of your rental income. Vacancy losses from one unit can be offset by the other occupied units.

Strong demand. With housing becoming less affordable, there is a greater demand for high-quality rentals.
Economies of scale. Operating costs per unit are typically lower for multi-family BRS compared to scattered single-family homes. Maintenance, management, insurance, and other services can be centralized.
New-build efficiency and lower maintenance. Because BRS properties are newly constructed, they often require less maintenance than older buildings, improving net operating income.
Rent growth potential. Rental increases are often an expected part of the renewal process, which means rental income often increases year by year. More units give you more opportunities for increases.
Additional Tax advantages. Depreciation, cost segregation, and expense deductions can substantially reduce taxable income. And, by holding the property in service as a rental for at least a year, proceeds on the sale are taxed at favorable capital gains rates.

However, there are possible drawbacks to consider as well, such as:

Higher capital requirements. Funding the land acquisition and construction presents a large barrier to entry for most investors. However, this can be overcome through certain investment models, as we’ll see shortly.

More complex management. Carrying a property from development into lease-up and stabilization requires operational experience and skill.
Longer timelines. Multi-family BRS requires a longer commitment than BTS projects.
Regulatory exposure. Multi-family housing may be subject to more regulatory scrutiny. Zoning and permitting may be more complex than with single-family.

5 Different Ways to Invest in Multi-Family Build-to-Rent

There are multiple methods of investing in multi-family BTR, making this sophisticated strategy available to investors of all experience levels and budgets.

1. REITs

REITs (real estate investment trusts) are companies that own income-generating real estate. Investing in a publicly traded REIT is just like buying stock in a publicly traded company. You purchase shares, which entitle you to a percentage of the company’s profits, paid out as dividends.

REITs often specialize in specific property types and/or geographic regions. While there are no REITs claiming to hold only multi-family BTR, multi-family BTR is a part of many residential REITs. So purchasing shares in a large residential REIT offers likely exposure to the multi-family BTR market.

When you invest in a REIT, you invest in the company, not necessarily the underlying real estate. You don’t have any control over which properties are held by the REIT or how they are managed.

2. Do It Yourself

If you’re looking for full control, and you have the experience, skill, availability, capital, and connections, you can develop your own multi-family BTR.

As the sole owner, you would be responsible for sourcing the land, obtaining permits, overseeing architecture and design, supervising construction, leasing up the completed units, and managing the stabilized property.

While the upside is enormous for the right investor, very few investors are qualified to manage such a project alone.

3. Partner with a BTR Development Sponsor

If you have the capital, but not the experience, network, time, skill, or desire to personally manage the development, you can partner with a BTR sponsor, essentially outsourcing the development phase to professionals.

Take Gatsby Investment’s Built-for-You program, for example. With this model, you finance the development, giving you sole ownership of the completed project. But instead of sourcing land deals, chasing permits, and managing architects, designers, and construction crews yourself, you outsource this phase to the expert developers at Gatsby.

This dramatically reduces the risk profile of the investment, as you get to leverage the resources of a team that has completed over 100 development projects to date. Our systems and networks have been designed to save time and money while maximizing your ROI potential.

4. Private Equity

Private equity is the traditional method of pooling funds from multiple investors to finance a specific real estate project. Each investor chips in to purchase the land, fund the construction, and earn a share in the rental income and proceeds from the eventual sale.

The project is typically managed by a professional sponsor, with the level of investor involvement varying by deal.

One difficult aspect of private equity is access. By definition, these deals are not made available to the public. You need to be well-connected with other investors and real estate developers to find private equity opportunities. Another difficult aspect for many investors is the capital requirements. You may need $50,000 to $100,000 (or more) to buy into a private equity deal.

5. Real Estate Syndication

Real estate syndication is the more modern iteration of private equity. Like private equity, you have multiple investors pooling funds. However, unlike private equity, these deals can be marketed to the public. Not only does this make opportunities more accessible, but by allowing for more investors, syndication reduces the investment minimums. You may be able to buy into a multi-million dollar multi-family BTR for as little as $25,000.

Syndication is often compared to crowdfunding (and rightly so, as the models are extremely similar). However, syndication offers a more stable ownership structure, with all investors named as limited partners in the property’s ownership entity.

The professional sponsor is built into the deal, so investors don’t have to haggle over design or management decisions. Everything from land acquisition through stabilization is professionally handled for you.

Invest in Multi-Family Built-Rent-Sell with Gatsby Today!

Are you considering investing in multi-family BTR through a partnership with a BTR sponsor or via syndication? Gatsby Investment would be proud to support you in your investment journey!

Gatsby specializes in multi-family build-rent-sell in the high-demand Los Angeles rental market. You can leverage our carefully crafted systems, curated professional network, and decades of local real estate experience to boost your portfolio.

Those who have invested with us have earned average annualized returns of 22.3% since 2017! And with our 100% profitable track record, you can invest with confidence.

Learn more about investing with Gatsby and explore our syndicated multi-family build-to-rent investment opportunitiestoday.

Gatsby Investment Hosts Real Estate Industry Event to Strengthen Deal Flow and Property Sales

At Gatsby Investment, our focus has always been on creating strong real estate investment opportunities for our investors. One of the ways we continue to do that is by building and maintaining strong relationships across the real estate industry.

Recently, Gatsby hosted a real estate networking event in Los Angeles that brought together more than 150 local agents, brokers, and industry professionals to learn more about our development model, our investment platform, and the ways we collaborate with professionals across the city.

While the evening was a great opportunity to connect with industry professionals, it also plays an important role in strengthening the network of professionals that supports Gatsby’s investment platform.

Expanding Our Network to Source More Opportunities

A key part of Gatsby’s strategy is sourcing development opportunities before they reach the open market. By building strong relationships with agents and brokers across Los Angeles, we position Gatsby as a first call when they come across off-market deals or attractive development opportunities.

During the event, we shared with agents exactly what types of properties we are actively looking to acquire this year and our current deal criteria.

For agents and brokers interested in collaborating with us, we have a page outlining how Gatsby works with industry partners and the opportunities available for real estate brokers and agents.

Creating More Exposure for Gatsby Properties

Another important goal of the event was to introduce agents to the new construction multi-family properties we develop.

When Gatsby completes a project and brings it to market, local agents play a key role in connecting those properties with qualified buyers. By educating brokers about our inventory and investment product, we increase the visibility of these properties across the market and ensure that Gatsby’s completed developments are marketed effectively and sold efficiently.

Sharing Strategic Insights with the Real Estate Community

The evening also included a discussion about current market conditions, tax strategies such as cost segregation and bonus depreciation, and why small multi-family properties, like ours, can be an attractive investment vehicle for business owners and professionals.

These conversations help position Gatsby not just as a developer, but as a strategic partner within the real estate investment industry.

Building Long-Term Partnerships

Events like this are part of Gatsby Investment’s broader effort to build strong, long-term relationships with the professionals who help make our projects possible. This includes agents, brokers, lenders, and other industry partners.

The stronger our network becomes, the stronger our pipeline of opportunities and the more effectively we can bring our completed developments to market.

We look forward to continuing to grow these relationships and creating more opportunities in the years ahead.

The State of Los Angeles Housing One Year After the Fires

It’s been over a year now since the Palisades and Eaton fires ravaged Los Angeles, claiming 31 lives directly, destroying around 13,000 residences (with some estimates as high as 16,000), and decimating community neighborhoods.

As Los Angeles had already been in a decades-long housing shortage, the loss of so many dwellings was an especially difficult blow to absorb.

Our early estimates projected a timeline of 15+ years for a full physical and economic recovery. So how are we doing one year into the process? Are we recovering as we should be? And what else can we do?

A Status Update on Rebuilding Los Angeles

Here is the status of the recovery efforts as of January 2026, according to data collected by the Associated Press:

Fewer than a dozen homes have been rebuilt.

Around 900 homes in the affected areas are under construction and on pace to be completed in 2026.
Over 80% of “total loss” insurance claims are still unresolved, meaning funds have not been released to homeowners to begin the rebuilding process.
More than 600 single-family lots in the affected areas have been sold, indicating that many owners do not intend to return to their communities.

How Expectations Compare to Reality

While the numbers may seem low, they’re actually in line with expectations.

Based on the situation immediately following the fires, we estimated that it could take a year or two simply to remove debris and conduct the environmental testing needed to ensure safe builds in the burn areas.

The fact that nearly 1,000 buildings are fully permitted and under construction is encouraging. It’s impressive that construction has already been completed on multiple homes!

We’re also encouraged by the streamlined permitting process in place, which is helping the permit office process applications roughly three times faster than the average time in the five years before the fires.

At this stage, the biggest concern in the bottleneck in the insurance claims processing. LA County is currently investigating State Farm Insurance, the largest private homeowners insurance provider in the area, due to complaints of claims being delayed, underpaid, and even denied.

There is also some concern about the availability of labor and materials once claims are settled and more widespread building is ready to begin. Despite the years that have passed since the COVID era, lead times for certain materials are still substantially longer than they were pre-pandemic. Furthermore, the shortage of skilled laborers and construction workers has been exacerbated by limited wage growth and changes to immigration policy.

How to Move Forward for a Stronger LA

Around 70% of the fire victims are still displaced. The goal is to create local housing quickly for all of those who want to return.

Firstly, resolving outstanding insurance claims will give homeowners access to the funds needed to rebuild. Without that financial foundation, even the best rebuilding policies will struggle.

Another practical step is to increase zoning flexibility. By allowing duplexes, triplexes, or small multi-family buildings on large lots that were previously limited to single-family homes, we can create more housing units more efficiently. This type of gentle density leaves the community character intact while providing faster access to local dwellings. Gatsby Investment specializes in this type of development, which helps to ease the heightened housing crisis while simultaneously providing strong returns for investors.

Of course, we also need to build more housing overall. That includes encouraging new residential construction, supporting infill development, and streamlining the development process. Gatsby’s Built-for-You program, for example, allows homeowners and investors to outsource the design and construction of new homes to the experienced developers at Gatsby. Expanding the workforce through training programs, apprenticeship pipelines, and balanced immigration policy can also help make sure that qualified labor is available once funding and permits are in place.

Nothing can fully replace the homes, neighborhoods, and lives lost in the Palisades and Eaton fires. But with thoughtful policy changes, coordinated rebuilding efforts, and a commitment to increasing housing supply, we can build a more resilient LA.

Gatsby’s Real Estate Investment Strategy for 2026

At Gatsby Investment, we have established a profitable niche in multi-family development in Los Angeles. However, we continuously adjust our real estate investment strategy to take advantage of changing market conditions, zoning laws, and building regulations.

We find areas of opportunity even when interest rates are 6%+, property values are high, and buyer demand is weak.

Want to know what we’re doing to maximize return potential this year? Here’s a behind-the-scenes look at Gatsby’s Real Estate Investment Strategy for 2026!

A Snapshot of the Local Housing Market

To understand our strategy, you need to know what the LA housing market generally looks like today.

According to our LA Real Estate Outlook:

Buyers hold the negotiation leverage. Homes are sitting on the market longer, we’re seeing more price drops, and the sale-to-list price ratio is down. At this stage of the real estate cycle, buyers are in a better position than sellers to negotiate terms. This makes it easier for us to acquire new properties with favorable prices and terms.

Rental demand is up, driving long-term appreciation. With 63% of Angelinos renting their homes, LA’s rental units are always in demand. But with major events coming up (like the FIFA World Cup in 2026, the Super Bowl in 2027, and the Olympic Games in 2028), we’re expecting to attract more transplants to our city. This means strong return potential for long-term rental holdings, in terms of both cash flow and long-term appreciation (not to mention tax benefits!).
LA is still experiencing a housing shortage. The perpetual housing shortage was made worse due to the devastating 2025 wildfires that destroyed over 11,000 residential units. Developing new units is critical for the recovery and long-term sustainability of our local communities.

Gatsby’s Real Estate Investment Strategy for 2026

Here’s Gatsby’s plan to maximize return for investors while building a stronger LA in 2026.

1. Use the Buyer’s Market for Favorable Acquisitions

While property values have been incredibly resilient since the COVID-era gains, the lower buyer competition gives us the leverage to negotiate lower prices on lots suitable for development. We’re actively seeking lots that meet our strict criteria:

Lot Size: Minimum of 6,000 square feet

Location: Must be within the LA Department of Building and Safety (LADBS) jurisdiction (properties that appear on the ZIMAS database)
Purchase Price: Below $1,500,000 per lot
Zoning: RD1.5, RD2, RD3, R2 and R3
No historic preservation restrictions
We do not purchase Ready-to-Issue (RTI) properties
Property must be delivered vacant
Must include a front driveway (no shared driveways)
Comply with SB8 regulations (owner-occupied in the last 5 years) preferred
Flat land only (no hillside properties)

We regularly partner with real estate agents and brokers to source deals, but everyone is welcome to submit a lot for our consideration.

2. Develop Small Multi-Family Structures for Today’s Renters

Rather than building large, obstructive apartment complexes that take years to permit, let alone build, Gatsby is focused on small 4-6 unit buildings that are easier to permit and faster to build.

This small multi-family development strategy also lets us take advantage of zoning changes that allow small multi-family construction on certain lots that formerly allowed only single-family homes. And we can build to the needs of modern renters, including accommodating growing families and shared living situations with multiple roommates.

These buildings add much-needed housing without overwhelming neighborhoods with an unmanageable influx of residents or unsightly large complexes. The goal is gentle density: creating more housing to sustain local communities without costing them their identity.

3. Carry Those Developments into Long-Term Rentals

Rather than fighting current market conditions by trying to sell immediately upon completion of construction, Gatsby is stabilizing our newly built multi-family properties. This means we lease up the building with qualified renters and collect rental income for at least one year before selling under more favorable conditions.

This build-rent-sell (BRS) model lets us collect recurring rental income for investors during the hold period and command a higher sales price for the cash-flow-positive property once more buyers enter the market. Plus, by holding the property in service as a rental for at least one year, our investors benefit from lower capital gains rates, which let you keep more of your returns!

4. Help Homeowners Rebuild

It’s been a year since the 2025 fires, but after a lengthy debris removal and environmental testing process, rebuilding is only just beginning in many of the affected areas.

To aid in the rebuilding process, Gatsby launched Single-Family Built-for-You Developments. This program allows homeowners to outsource the development of their new home to Gatsby. We have the systems, suppliers, lenders, and contractors in place to streamline design and construction to ease the recovery.

If you, or someone you know, is looking to rebuild, we warmly invite you to explore the benefits of building with Gatsby.

5. Use Our Systems to Support a Wide Range of Investors

We understand how complex and expensive development can be in Los Angeles. But through our real estate syndication projects, any accredited investor can get in on the action with as little as $25,000.

Real estate syndication pools funds from multiple investors to finance a specific real estate project (like our multi-family BTRs). Gatsby handles every detail of the project, from analyzing deals and acquiring properties to overseeing construction and handling property management. All you have to do is choose the project(s) you want to invest in, place your investment, and watch your project progress via the online dashboard.

Don’t want to share equity? No problem! Our new Multi-Family Built-for-You Program empowers individual investors to outsource the development of their new multi-family asset to Gatsby. We handle the development for you and turn over a fully leased-up, income-generating asset to you in just 18-24 months!

Put Gatsby’s 2026 Investment Strategy to Work for You!

Don’t be sidelined by the current housing market. Leverage Gatsby’s strategy, systems, and resources to build your real estate portfolio under any market conditions!

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!

Sign-up to view investment opportunities

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 2016–2025

100

Successfully acquired deals