Roofstock is an online marketplace where investors buy and sell single-family rental properties, often with tenants already in place. Think of it as a specialized real estate platform designed specifically for investment properties rather than homes people plan to live in. The company launched in 2015 and has facilitated billions of dollars in real estate transactions, making it one of the more established platforms in the growing world of online real estate investing.
How the Marketplace Works
Roofstock connects property sellers with investors looking to buy rental homes. What sets it apart from traditional real estate listings is the focus on income-producing properties. Many of the homes listed on the platform already have tenants paying rent, so buyers can start earning rental income immediately after closing rather than spending weeks or months finding a renter.
Each property listing includes financial details you would not typically see on a site like Zillow or Realtor.com: estimated cap rate (the annual return based on the property’s net operating income relative to its price), neighborhood rating, rent estimates, inspection reports, and projected cash flow. The idea is to give remote investors enough data to make a purchase decision without physically visiting the property, though you can always arrange an in-person inspection if you prefer.
Roofstock operates across dozens of markets throughout the United States, concentrating on areas where single-family rental demand is strong and price points are accessible to individual investors. You can filter properties by location, price range, estimated yield, and whether the home is already occupied by a tenant.
Fees for Buyers and Sellers
Roofstock charges a marketplace fee on both sides of a transaction. Buyers pay either $500 or 0.5% of the contract price, whichever is higher. So on a $200,000 property, the buyer fee would be $1,000. On a $80,000 property, the flat $500 minimum kicks in.
Sellers face a larger fee: $2,500 or 3% of the sale price, whichever is greater. That 3% is comparable to what a traditional listing agent might charge, though sellers who own multiple properties on the platform get a discount. An owner listing six properties, for example, pays 2.75% instead of the full 3%. These fees are separate from any closing costs, title fees, or financing charges you would encounter in a standard real estate transaction.
What Roofstock Offers Beyond Listings
The marketplace itself is the core product, but Roofstock has built additional services around it. Property management referrals help out-of-state investors find local managers to handle tenant relations, maintenance, and rent collection. The platform also provides title and escrow coordination, aiming to streamline the closing process so that buying a rental property online feels less complicated than navigating a traditional purchase.
Roofstock has also offered a feature called “Roofstock One” at various points, which allows investors to buy fractional shares of individual rental properties rather than purchasing an entire home. This lowers the entry point significantly, letting people invest in real estate with far less capital than a full property purchase would require. Availability of this option can vary, so it is worth checking the platform directly if fractional investing interests you.
Who Roofstock Is Designed For
The platform targets a few specific types of investors. First-time real estate investors who want exposure to rental income but feel overwhelmed by the traditional process of finding, evaluating, and closing on investment property will find the data-rich listings helpful. Out-of-state investors are another core audience. Buying rental property in a market hundreds of miles away is logistically difficult through traditional channels, and Roofstock’s inspection reports, neighborhood data, and property management referrals are built to reduce that friction.
Experienced investors with existing portfolios also use the platform, particularly when they want to sell tenant-occupied properties. Selling a rental home with a tenant in place can be tricky on the open market because most traditional buyers want to move in themselves. On Roofstock, every buyer is an investor, so an occupied property is a feature rather than an obstacle.
How Buying a Property Works
You browse listings on the site, review the financial projections and inspection data, and submit an offer through the platform. Offers can be made with financing or cash. Once a seller accepts, the transaction moves into a closing process that Roofstock helps coordinate, including title search, escrow, and any lender requirements if you are using a mortgage.
Roofstock offers a 30-day money-back guarantee on certain certified properties. If you close on a home and are not satisfied, the company will buy it back within that window. This guarantee does not apply to every listing, so pay attention to which properties carry the certification badge.
The entire process, from accepted offer to closing, typically takes a few weeks, similar to a traditional real estate purchase. If you are paying cash, it can move faster. Financing an investment property generally involves stricter requirements than a primary residence mortgage: higher down payments (often 20% to 25%), slightly higher interest rates, and more documentation of your financial reserves.
Risks and Limitations
Roofstock simplifies the process of finding and purchasing rental properties, but it does not eliminate the risks inherent in real estate investing. Property values can decline, tenants can stop paying rent, and unexpected repairs can eat into your returns. The financial projections on each listing are estimates, not guarantees, and actual performance depends on factors like local market conditions, tenant behavior, and maintenance costs that are difficult to predict precisely.
Buying property sight unseen carries its own risk, even with inspection reports. Photos and documents can only tell you so much about a neighborhood, the condition of systems like HVAC and plumbing, or issues that might not surface until months after purchase. If you are investing a significant amount of money, arranging your own independent inspection before closing adds a layer of protection.
Liquidity is another consideration. Unlike stocks or bonds that you can sell in seconds, real estate takes time to sell. If you need your capital back quickly, you may have to list at a discount or wait weeks or months for a buyer. Roofstock’s marketplace can speed this up compared to traditional listings, but selling a rental property is never instant.