You have to live in a house for two years before you can avoid capital gains tax. Otherwise, as an Investor, I am paying capital gains unless I do a 1031 exchange (meaning I am just delaying the inevitable)
A friend runs syndicates for commercial properties like hotels and apartment complexes. His product is essentially depreciation credits, and buildings are like a byproduct.
"In Barker v. U.S., a property purchased solely to exchange for other property was determined to not meet the “held for” requirement. Accordingly, if it is clear the intent was resale and not investment, then the transaction is ineligible for a 1031 tax deferred exchange."
My grandmother and mom owned properties in extremely poor areas, I remember visiting properties with each of them as a child. Rent would be something like $300-$400 per month and they could charge this because they owned the property for decades, the loan(s) were paid off.
I --could-- take a similar line with the home I am living in now, my primary residence, and rent it out below market..but why should I? I'm most certainly not a millionaire yet, and missing out on $300 per month that I could/should be saving should a repair come up is not ideal.
It seems like the consensus here is usually that "the market" is a good thing, and I am not sure why this case is different.