Passive income is something that everyone dreams about. Investing in a rental property gives you the opportunity for that dream to come true. While investing in a rental property is not cheap and comes with various levels of risk, it has become easier to find a property to invest in. Companies like Roofstock and Roofstock’s competitors are making it easier to have the information and resources needed to make a decision about investing in a rental property. If you are considering using a company like Roofstock review your options so you can make a decision that best fits your wants and expectations.
Roofstock is an online marketplace that was created specifically for investing in single family rental properties. The company provides research, data, and analytics needed to make an informed decision about investing in a rental property. The goal of Roofstock is to allow investors to easily invest in rental properties. To meet this goal, Roofstock sells properties that already have tenants living in them. Taking the stress and hassle of finding renters completely out of the equation. Every Roofstock property is also certified by them. Meaning the property was professionally inspected, repair costs were calculated, and other clerical work was done. Roofstock knows you hold your rental properties to a high standard, and it aims to do the same.
- Rental properties already have tenants
- Ability to connect you with a property manager
- Provides data and research on each rental property
- Buyers are charged a 5% fee and sellers are charged a 2.5% fee
- Not available in all areas
- Requires a lot of trust in the transaction if buying a property that you do not live near
Homeunion is online marketplace very similar to Roofstock, with a few differences to consider. They have created technology that recommends properties and portfolios to you based on your financial preferences and goals. Not only will they help you decide on a property, but they will help you decide the best funding option, and acquire the property on your behalf. While all the properties listed on Homeunion do not have tenants currently living in them, Homeunion is able to market the property and find tenants for you. Homeunion will also manage the property for a percentage of the monthly rent. You will obviously have to pay for all these services, but the idea is that you still come out on top.
- Able to do everything from recommending the property, to finding tenants, to managing it
- Provides detailed research on all properties
- Open to all investors
- Must have an account to browse properties
- 3.5% property acquisition fee and 10.5% of monthly rent for management fee
- Does not have properties in all areas
While Homelight is a Roofstock competitor, it does not offer the exact same service that Roofstock does. Homelight is not an online marketplace for rental properties. It is a service that connects you with a qualified agent that can help you find a good investment property. When visiting Homelight’s site, you simply fill out a questionnaire of what type of property you are looking for, how much you are willing to spend and other various questions. While Homelight does not allow you to compare thousands of rental properties at once, it does connect you with a real person who is eager and willing to help you meet your investment goals.
- Service is completely free to use
- Platform is user friendly
- Service comes highly recommended and is known for producing good experiences
- Only get 3 agent recommendations
- No property management service
- Not able to browse multiple rental properties for sale
Which Service Should You Use?
Roofstock and each of Roofstocks competitors offer a different experience. Different levels of assistance are available from each service at a cost. Determine what you want out of your investment, how involved you want to be, and how much help you will need to find a good rental property. Asking yourself these questions will help you determine which service will be the most beneficial to you.