Summary: Is Roofstock a good investment?
Similar to many crowdfunding platforms, Roofstock provides a marketplace where buyers can view and purchase properties with attractive investment profiles and cash-flow potential, and sellers can market homes for sale to investor buyers. The availability of leased single-family rental properties makes it easy to purchase and own a customized portfolio of certified, cash-flowing homes within 1031 exchange time limits.
Roofstock, which launched in 2015 and has secured $133 million in venture capital, completed its first transaction in March 2016 and considers itself a rental property marketplace "created by investors for investors." For each offering, Roofstock provides research, analytics, and insights that allow you to evaluate and purchase independently pre-certified properties.
The Roofstock search filter lets you easily find certified investment properties sorted by the attributes that matter to you, whether that be location, list price, gross yield, neighborhood rating, funding type, estimated annual appreciation, or other criteria. And once registered on the site, you can save the custom filters you set up so you can quickly find the offerings that interest you every time you log in. At the time of this review, Roofstock's marketplace had over 400 properties available, so being able to search is an important feature.
One important aspect of owning a rental property is property management, which includes screening and placing tenants, collecting rent, managing tenant turnover, and taking care of maintenance issues. If not managed properly, your rental can become a money pit. Roofstock offers "preferred property managers" that they've screened, but each investor ultimately decides how they want to manage the property after closing.
Location is a major success factor that will determine whether your rental generates the reliable monthly income you need. Roofstock provides some information for you. Of course, you'll want to dig deeper to uncover crime rates, school and neighborhood ratings, rent comps, commuting convenience, job availability, and other things that are important to tenants.