If you’re looking for the best passive income ideas, then buying rental properties is one of the most lucrative options out there. It’s not the “set it and forget it” type of passive income, at least not in the beginning.
Oftentimes, people focus so much on the potential for high returns on investment without considering the upfront work required to research different properties, evaluate the quality of the neighborhood and surrounding community, assess what the long-term gains might be, find and screen prospective tenants, maintain the property…and so on.
It doesn’t sound so “passive” now, does it? Fortunately, RoofStock was designed to make the whole process of investing in rental properties much easier. In a nutshell, RoofStock helps investors buy and sell rental properties in many different neighborhoods across the U.S.
With data and analytical reports provided by RoofStock, you’ll be able to easily determine whether or not you want to invest in a particular property. And, in many cases, the properties already come with rent-paying tenants!
Are you ready to expand your passive income earning potential? Here’s everything you need to know before selling or buying rental properties with RoofStock.
Investing in Rental Properties
RoofStock’s approach is simple. They want to give prospective investors all the information they need in one convenient location so they can expedite the investment decision process. Each listing on RoofStock comes with the following features,
- Photos, floor plans, 3-D tours, curb view images
- Property inspection and valuation documents, insurance quotes
- Interactive visualization tools for assessing the property’s potential returns and projected expenses
- Information on the current lease
- Neighborhood ratings and local school district scores
- Options for local property management
To get started, you should first determine how much you want to spend on a down payment. In most cases, 20% down is the strongly recommended or required amount. Next, you can set up custom filters that narrow down available listings based on price range, expected returns, and location.
With RoofStock, you can invest in properties anywhere in the U.S. and hire a dedicated property manager to deal with tenant issues, collect rent, and schedule repairs. A vast majority of listings on the site are single-family homes, and every property is certified by RoofStock inspectors to ensure you don’t lose money on a bad property.
What Costs Do RoofStock Investors Cover?
When you make an offer on a property, you don’t have to pay anything upfront. Some properties may be listed as “buy now,” while others are open for negotiation.
If your offer is accepted, RoofStock will charge you $500 or 0.5% of the contract price, whichever is higher. There are no other fees for using RoofStock, and there’s even a 30-day money back guarantee to ensure you make the best investment decisions for your portfolio.
Regarding the Roofstock Guarantee – there are actual two great benefits. Firstly, the 30-day money back and satisfaction guarantee that you mention in your review. But in addition to that, Roofstock guarantees a buyer will begin earning rental income on a vacant property within 45 days of closing if they select a Roofstock certified property manager. We do this because we do our best to encourage property managers we certify and promote to our customers to find a tenant for a vacant home purchased through Roofstock. I think that’s a great value add that your readers would like to know about.
More info here on the Roofstock Guarantee here: https://learn.roofstock.com/
If you are paying with cash, then the transaction will likely take about 15 business days to close on the property. Down payments completed with financing from a qualified financial institution will likely take 30 days to close on the property. Once you close the deal, then you’ll start earning rental income right away.
Selling Property on RoofStock
According to RoofStock’s records, properties listed on its website sell as much as 77% faster than homes listed on traditional marketplace listings. Additionally, RoofStock sellers have saved an average of $11,500 in many cases, thanks to the website’s efficient approach to connecting interested investors with motivated sellers. These numbers are specific to rental properties listed on Roofstock. Listing with Roofstock allows a landlord to keep the tenant in place, eliminate the need for showings and turn costs, saving them both time and money, compared to having to vacate the home, renovate and then list it on the MLS (the traditional marketplace for selling property) and deal with traditional showings.
With RoofStock, there’s no need to hold stressful open house dates or property showings because you can simply attract buyers from the comfort of your own home. You can even sell your property while tenants are still occupying the property because this offers a built-in income stream for the next buyer.
The cost of listing your property on RoofStock is $2,000 or 2.5% of the sale price. It typically takes about 15 to 30 days to finalize your listing because RoofStock needs to compile all the necessary information and certify your property before it can appear publicly on the RoofStock marketplace.
Should You Invest with RoofStock?
Whether you’re a young professional seeking ways to supplement your income or you’re a retiree seeking passive income opportunities, buying and renting out properties through RoofStock is an excellent way to get started on the road to financial freedom.
Owning and leasing out your own rental properties can be a stressful experience for some, but with RoofStock’s extensive property / neighborhood / tenant information, low costs, and incredible customer support, you could make the process so much easier by buying and selling property through RoofStock.