Roofstock seeks to accomplish one thing: Help you invest in data-backed single-family rentals that stay occupied and never stop generating cash. Keep reading to learn about what the company does, the best features, cost, and how you can get started.
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What Is Roofstock?
Roofstock is an online single-family rental (SFR) marketplace. It connects real estate investors with stable, tenant-occupied rentals that immediately generate returns.
Every investment property is heavily researched and backed with data and insights that help investors make smart decisions about which properties have the most cash flow potential.
Roofstock is part of the booming $3 trillion SFR market. Their mission is to help real estate investors grab a bigger piece of the pie by connecting them with rental property owners who are ready to sell.
They are the recipients of a few prestigious awards and accolades in the industry, including two consecutive years on the Forbes FinTech 50 list, recommendations from Forbes, the Wall Street Journal, and Recode.
In this guide, we’ll cover the benefit of investing in single-family rental properties, how Roofstock works, the features available for investors (buyers) and sellers, average costs, and more.
Why Single-Family Rentals?
As a real estate investor, your number one measure of success is cash flow. What better way to ensure monthly cash flow than rental properties that are already occupied by tenants?
Roofstock works with reliable sellers to provide data and figures that show exactly how long tenants have occupied their properties, the monthly rent price over time, tenant reliability and payment history, property inspection results, and more.
Roofstock simplifies the process of investing in SFR properties by compiling all this information for you in their online marketplace and connecting you with the right sellers, lenders, insurance companies, and property management companies.
Researching investment properties takes time, and outside of the Roofstock marketplace, there are no protections or guarantees after you close. That’s one-way Roofstock provides great value to investors.
How Does Roofstock Work?
Roofstock’s basic process is Search, Analyze, Check Out, and Close. We’ll look at each step and how it works to give you a clear understanding of the Roofstock process.
First, you perform a search on Roofstock to discover rental properties that meet your criteria. You can search for properties by location, list price, and expected returns.
You can choose to receive a daily or weekly email showing you rental properties that match the criteria you’ve set up. When you’ve found a property that interests you, you’ll move to the next step: Analyze.
After you’ve found a property you want to look deeper into, Roofstock gives you the ability to perform a full analysis and review all property details. You can look at lots of pictures, floor plans, take a 3D tour, view a 3D model, the curb view, and more.
Here’s a look at the different ways you can analyze a Roofstock property:
- Review all property inspections and valuations
- View title report and insurance quote
- Use interactive tools to see cost and return estimates
- Look at current tenant and lease details
- View tenant payment histories
- See neighborhood ratings and school district scores
- Review property management company options
After analyzing the properties you like, Roofstock enables you to check out by making an offer virtually. There is no cost to make an offer. If the property owner accepts your offer, you will finalize the contracts in the next step: Close.
Accepted offers have a .5% fee of the total contract price, or $500, whichever is higher. In other words, you’ll pay a minimum of $500 to Roofstock as a marketplace fee. This fee is only charged in the event your offer is accepted.
If you don’t want to make an offer and want to speed up the process, you can make an offer at the full list price and checkout online. Once you do this, the property will be removed from the marketplace so you and the owner can finalize the contracts and close on the property.
Roofstock makes sure you have everything you need at your fingertips to close on the property you select. They’ll help link you up with lenders, insurance companies, and property management companies that can help you hit the ground running.
Roofstock estimates closing will take about 15 days when you pay with cash. If you’re financing, expect closing to take closer to 30 days. One reason some investors shy away from single-family rentals is the huge responsibility of property management.
Roofstock connects you to trusted property management companies that they regularly work with. So you can feel secure when you invest in a tenant-occupied rental property and know that you can pick up where the previous owner left off, start generating cash flow, and bring home returns.
After successfully closing, you’ll start earning money from your SFR. Because Roofstock properties are already occupied by tenants, the moment the property is yours, you’ll begin generating returns.
If you choose to work with a property management company, they’ll immediately spring into action, taking care of tenant relations, payment, facilitating work orders and maintenance, and more. You get the benefit of continued Roofstock support after you close on a property.
Average Roofstock Prices
Wondering how much Roofstock single-family properties cost? There’s no average price, but there are price points that can work for every real estate investor.
We’ve seen Roofstock properties listed as low as $36,000 up to luxury properties that rent out for more nearly $3,000 per month.
Here’s an example of the rental properties listed on Roofstock right now.
Remember that the list prices are the “Buy It Now” prices. You can submit a free offer on any property you like. Submit an offer equal to the current list price to move the closing process along quickly.
Roofstock is an award-winning financial technology company for a reason. They offer the Roofstock Guarantee, which guarantees you’ll earn rental income from each property you purchase within 45 days. For those with limited time or experience, this platform is worth a look.
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With all this information in mind, you might still be wondering if Roofstock is the right method for you to find and purchase rental properties as a real estate investor. That question is best answered when you determine a few things about how you want to invest.
Roofstock might be the right choice for you as an investor if:
- You want a virtual, transparent process
- You want to review and select investment properties in an “online shopping” experience
- Immediate cash flow is essential to you
- You don’t want to rehab or extensively repair properties
- You’d like to work with a property management company
Roofstock is an award-winning financial technology company for a reason. They offer the Roofstock Guarantee, which guarantees you’ll earn rental income from each property you purchase within 45 days.
The guarantee enables them to waive all monthly management fees until your property is actively leased, if it hasn’t been already at the point of purchase. They also offer a 30-day money-back guarantee (if you request it within 30 days after closing).
If this sounds like your cup of tea, it’s worth checking out. Just remember that the best deals typically happen off-market, so what you see on Roofstock is likely to be what’s already picked over.
Is Roofstock Right for You?
Roofstock is unique because it connects investors with the resources they need to earn fast cash returns on their properties. It also keeps tenants in their homes without disruption through the process.
Finally, it provides insights and data that helps investors make the best, financially sound decision about each property. Have you successfully used Roofstock as an investor or seller? We’d love to hear about your experience in the comments section.
For someone just with limited time or just getting started in real estate, Roofstock is worth a look. However, we’d be remiss if we didn’t mention that it’s important to do your own due diligence and never believe a seller’s cash flow claims without verifying them yourself.