Buying a rental home online might sound like a crazy idea, but Roofstock makes it easy and worry-free. If you want to become a real estate investor without the hassle of fixing toilets, Roofstock might be the answer you\u2019re looking for.<\/p>\n\n\n\n\n\n\n\n
What is Roofstock?<\/h2>\n\n\n\n
Roofstock helps investors buy rental properties. The online marketplace lists hundreds of single-family homes available for purchase. You can pick from managed investments starting at $5,000 or buy larger multi-million-dollar portfolios. <\/p>\n\n\n\n How much you invest depends on where you\u2019re at financially. To help narrow your search, the filters in Roofstock\u2019s marketplace<\/a> let you view homes by location, price, rent, and percentage yield.<\/p>\n\n\n\n One feature that sets Roofstock apart is its turnkey approach to rental properties. By offering a property management team that takes care of the tenants and day-to-day management, you get a made-for-you solution to real estate investment. <\/p>\n\n\n\n Unlike Fundrise, EquityMultiple, or other passive real estate investment opportunities, Roofstock is not crowdfunded real estate. With Roofstock, you\u2019re buying the property outright and have complete ownership of the home.<\/p>\n\n\n\n It offers an easier path to real estate investing than what you might expect. The process is more passive than the usual route of finding an agent, driving around town to look at multiple properties, manually researching information about the home, and analyzing all the documents.<\/p>\n\n\n\n Instead, Roofstock does the groundwork for you. It\u2019s a full solution to turnkey rental properties.<\/p>\n\n\n\n The platform provides research, analytics, and insights to help you pick the best home to buy. Whether you\u2019re getting started in real estate, or you\u2019re a seasoned pro, you\u2019ll want to review:<\/p>\n\n\n\n If you\u2019re looking to buy real estate, Roofstock gives you everything you need to make an informed decision.<\/p>\n\n\n\n Your property can deliver cash flow from day one because the rentals already have tenants who meet Roofstock\u2019s strict screening guidelines. That means busy professionals can invest without worrying about the time commitment or any repairs you might need to do.<\/p>\n\n\n\n Roofstock has investment options if you\u2019re just starting to get your feet wet or want to build a significant portfolio of rental properties. That\u2019s part of what makes it so great: No matter what price point you\u2019re at, you can get in on single-family rental homes.<\/p>\n\n\n\n Roofstock lets you invest at three different levels:<\/p>\n\n\n\n Which type you go with depends on how much money you have available to invest.<\/p>\n\n\n\n Roofstock has a focus on single-family rental homes. The marketplace has over 500 listings ranging in price from about $40,000 to over $400,000. <\/p>\n\n\n\n Each listing has photographs of the inside and outside of the property, including a \u201ccurb view\u201d that shows what the neighborhood looks like from the street. You\u2019ll also see how much the property costs, what your estimated return is, and be able to download property valuations, title reports, and other essential documents.<\/p>\n\n\n\n It might not look like Roofstock has many portfolios available when compared to individual rental properties. The selection is quite large when you consider each portfolio includes multiple homes, combined together in a single package.<\/p>\n\n\n\n If you have the cash available, a portfolio is a great way to go. The listings are made up of groups of properties and have a minimum purchase requirement.<\/p>\n\n\n\n For instance, one option might require you to purchase at least three of the four single-family homes included in that listing. Larger portfolios can have over 100 homes, and you may need to buy all of them at once.<\/p>\n\n\n\n Another thing that sets portfolios apart from Roofstock properties is that portfolios are more likely to include multi-family rentals, while properties are primarily single-family residences.<\/p>\n\n\n\n If you\u2019re not ready to put down tens of thousands (or millions!) of dollars, but still want to invest in real estate, consider buying shares of ownership with Roofstock One. This option has a lower barrier to entry since you can start with just $5,000.<\/p>\n\n\n\n Roofstock One<\/a> calculates your income on the percentage of ownership you have in the individual property.<\/p>\n\n\n\n Buying shares of a rental home has all the same benefits as buying a full unit. The property management partners will take care of the day-to-day operations so you can enjoy your passive investment.<\/p>\n\n\n\n How much cash you need depends on your investment goals. For example, investors who plan to purchase a home with cash will require 100% of the funds upfront, plus additional money for closing costs.<\/p>\n\n\n\n Taking out a mortgage is common when buying a home. When financing your primary residence, you may find loan options that require a down payment from 0% to 5%. The financing options are different if you\u2019re buying a rental property. You generally need 20% to 30% of the purchase price for a down payment, which can take a little while to save up for.<\/p>\n\n\n\n As for the costs, they\u2019re pretty reasonable. Reviewing listings in Roofstock\u2019s online marketplace doesn\u2019t cost anything. The property valuation, title reports, and other documents don\u2019t cost anything, either. <\/p>\n\n\n\n Once you find a rental home to buy, you can make an offer without paying anything. Roofstock charges a marketplace fee if your offer is accepted. You\u2019ll either pay 0.5% of the purchase price or $500, whichever is higher.<\/p>\n\n\n\n You also must pay the property manager for their services. The costs vary depending on which one you choose but can range from 6% to 10% of the collected rent. That means if the monthly rent is $1,750, your fee will fall between $105 and $175 each month. <\/p>\n\n\n\n Roofstock can help you save money on property management costs. The company works with preferred partners to negotiate lower fees, and you\u2019ll likely pay 8% or less<\/strong>.<\/p>\n\n\n\n![\"Roofstock\"](\"https:\/\/i1.wp.com\/www.marriagekidsandmoney.com\/wp-content\/uploads\/2020\/01\/Screen-Shot-2020-01-30-at-3.34.53-PM.png?fit=840%2C395&ssl=1\")
<\/a><\/figure>\n\n\n\nHow Does Roofstock Work?<\/h2>\n\n\n\n
![\"Roofstock](\"https:\/\/i2.wp.com\/www.marriagekidsandmoney.com\/wp-content\/uploads\/2020\/01\/Screen-Shot-2020-01-30-at-3.40.54-PM.png?fit=840%2C407&ssl=1\")
<\/a>How to Invest with Roofstock<\/h2>\n\n\n\n
Single-family rental properties<\/h3>\n\n\n\n
![\"Roofstock](\"https:\/\/i2.wp.com\/www.marriagekidsandmoney.com\/wp-content\/uploads\/2020\/01\/Screen-Shot-2020-01-30-at-3.44.09-PM.png?fit=840%2C400&ssl=1\")
<\/a>Single-family and multi-family portfolios<\/h3>\n\n\n\n
![\"Roofstock](\"https:\/\/i0.wp.com\/www.marriagekidsandmoney.com\/wp-content\/uploads\/2020\/01\/Screen-Shot-2020-01-30-at-3.49.10-PM.png?fit=840%2C407&ssl=1\")
<\/a>Fractional ownership shares in property<\/h3>\n\n\n\n
![\"\"](\"https:\/\/i2.wp.com\/www.marriagekidsandmoney.com\/wp-content\/uploads\/2020\/01\/Screen-Shot-2020-01-30-at-3.51.44-PM.png?fit=840%2C404&ssl=1\")
<\/a><\/figure>\n\n\n\nHow Much Money Do You Need?<\/h2>\n\n\n\n
Roofstock fees<\/h3>\n\n\n\n
Property manager fees<\/h3>\n\n\n\n