The narrative surrounding real estate investing has shifted dramatically over the past few years. As interest rates climb and cautious buyers step back from the housing market, a unique window of opportunity has opened. For those willing to look past conventional wisdom and adopt a creative approach to underwriting, today’s market offers discounts and concessions that haven’t been seen in years—with projections pointing toward an even more advantageous landscape in 2027.
To unpack how savvy investors are navigating this shifting terrain, BiggerPockets host Dave Meyer recently sat down with real estate veteran Zach LeMaster. A former Air Force optometrist who successfully replaced his 9-to-5 income through strategic property acquisitions, LeMaster is now the CEO of Rent to Retirement, one of the nation’s leading turnkey real estate companies. Together, they explored the strategies smart buyers are using to secure double-digit property discounts, historically low interest rates, and long-term portfolio growth.
Main Facts: Unlocking Double-Digit Discounts in a Cooling Market
While many prospective buyers are sitting on the sidelines waiting for broader economic shifts, active investors are finding unprecedented leverage. According to industry insiders, primary market drivers are creating a rare buyer’s advantage:
- Massive Price Reductions: National and regional homebuilders are highly incentivized to offload inventory. Individual investors are regularly securing 10% to 15% off baseline prices—and sometimes up to 20%—on new construction assets.
- Creative Financing and Concessions: Through builder-backed rate buydowns and seller concessions, buyers are finding ways to secure financing equivalent to the 3% and 4% interest rate ranges, or utilizing loans that require only 5% to 15% down without private mortgage insurance (PMI).
- The Power of Scale: Institutional buyers, such as major REITs and private equity firms, face increasing regulatory pressure and changing market dynamics. This has reduced institutional competition, leaving more inventory accessible to retail and independent investors who leverage volume partnerships.
Chronology: From Air Force Optometry to Turnkey Real Estate Empire
Zach LeMaster’s journey into real estate illustrates the compound effect of consistency over time. His path from a military healthcare provider to a prominent real estate entrepreneur highlights foundational lessons for anyone looking to scale a portfolio.
The Early Years: House Hacking in the Military (2010s)
Fifteen years ago, LeMaster was practicing optometry in the Air Force after graduating on a military scholarship (HPSP). With limited capital early in his career, he leaned on government-backed financing options.
"I bought my first property—house hacking it before I even knew the term—with a VA loan, putting no money down, living in half, and renting out the other half," LeMaster recalled. Stationed in North Dakota at the time, he continued purchasing local duplexes and small multi-family properties year after year, systematically building his net worth simply because real estate was a tangible asset he could understand.
The Out-of-State Pivot and Early Mistakes (2013)
As local markets became saturated and capital constraints loomed, LeMaster and his wife decided to look outward for higher yields. In 2013, they made their first out-of-state investment in Southside Chicago, focusing on Section 8 housing and multi-flat properties.
The experience was challenging. Between ongoing maintenance issues, heavy renovation costs, and navigating local housing authorities, the investment felt like "death by a thousand paper cuts." However, rather than abandoning the out-of-state model, LeMaster used the failure as a masterclass in market research, asset selection, and team building.
Building Rent to Retirement
Refining their systems allowed the couple to aggressively acquire properties out of state, eventually replacing their active optometry income entirely. This evolution culminated in the creation of Rent to Retirement, a company designed to help everyday investors bypass early operational hurdles by utilizing proven out-of-state turnkey strategies.
Supporting Data: The Math Behind Modern Real Estate Strategy
Navigating today’s high-interest-rate environment requires a departure from the passive buying strategies of the ultra-low-rate era of the early 2020s.
New Construction vs. Existing Housing
While older homes often present attractive initial price points, they frequently carry hidden renovation and maintenance costs. In contrast, new construction—particularly single-family homes and small multi-family units priced between $250,000 and $500,000 in the Sunbelt and Midwest—offers predictability.
Builders operating at scale cannot afford to let inventory linger on their balance sheets. While existing homeowners might wait six months to secure their target price, major developers are heavily motivated to move inventory quickly. Consequently, days on market for new construction are significantly higher, granting aggressive buyers tremendous negotiation leverage.
The Tax Advantage Ecosystem
Many beginner investors hyper-focus solely on monthly cash flow. However, long-term wealth is frequently accelerated through tax planning and asset leverage.
- Cost Segregation and Depreciation: Accelerating depreciation on properties (such as achieving a 30% depreciation write-off on a $300,000 asset) can generate substantial paper losses.
- The Short-Term Rental Loophole: Under specific IRS provisions (such as the "substantially all" test), investors operating short-term rentals without third-party management can often utilize accelerated depreciation against active income without necessarily meeting rigorous real estate professional hour thresholds.
- 1031 Exchanges: Allowing investors to defer capital gains taxes perpetually, building a compounding portfolio that can eventually pass to heirs with a stepped-up basis.
Official Responses: Industry Perspectives on the 2027 Outlook
Industry leaders emphasize that the current market environment rewards proactive problem-solvers over passive spectators.
"Investing when there were historically low interest rates that we’re never going to see again—that was easy," LeMaster noted during the discussion. "You could buy pretty much anything, and it would cash flow decently. But right now, this is the time when you have to be a true real estate investor."
This sentiment is echoed by institutional and independent advisors alike. The playbook for 2027 relies heavily on dollar-cost averaging—consistently purchasing fundamentally sound assets across all market cycles rather than trying to time the absolute bottom. By aligning long-term performance with the historical trajectory of the housing market, investors insulate themselves against short-term economic volatility.
Implications: What This Means for Everyday Investors
For everyday individuals looking to break into real estate or scale their existing holdings, the current landscape offers clear strategic takeaways:
- Auditing Resources (Time, Money, Skill): Before choosing a strategy (such as BRRRR, flipping, or turnkey investing), investors must honestly evaluate what resources they bring to the table. Those lacking time and renovation skills are often best served by outsourcing property management and focusing on portfolio-level strategy.
- Targeting Builder Concessions: Buyers should actively negotiate with national and local builders. Expecting a baseline 10% discount—structured through price reductions, closing cost credits, or interest rate buydowns—is entirely realistic in current A and B-class Sunbelt markets.
- Embracing Alternative Financing: With fixed conventional rates elevated, alternative financing structures such as Debt-Service Coverage Ratio (DSCR) loans, adjustable-rate mortgages (ARMs) with favorable 5-to-10-year terms, and local credit union partnerships can bridge the cash-flow gap until future refinancing becomes viable.
As the real estate market continues to evolve toward 2027, the primary differentiator between success and stagnation will not be the prevailing interest rate—it will be the creativity, discipline, and strategic positioning of the investor.
