Roofstock vs. Doorvest: A Comprehensive Comparison for Remote Real Estate Investing

The real estate market has traditionally been a popular path for investors to achieve financial freedom. For those looking to invest remotely in SFR properties, Roofstock and Doorvest are two platforms worth considering. In this article, we'll delve into the similarities and differences between these platforms, along with the pros and cons of each, to help you make an informed choice based on your investment preferences and goals.

How Roofstock and Doorvest Work:

Roofstock:

Roofstock offers investors complete control over their investments. Investors can explore hundreds of rental properties listed on the Roofstock Marketplace, spanning over 70 of the hottest real estate markets. These properties are listed by independent real estate brokers, who also populate financial information as they choose.

Once a property is identified, investors can negotiate terms, conduct due diligence (including property inspections and tenant document reviews), and complete the transaction entirely online. After the purchase, investors can choose to self-manage the property or hire a local property manager, with Roofstock providing recommendations if needed.

Doorvest:

Instead of traditional property shopping and due diligence, Doorvest is an all-in-one, truly turnkey real estate investment platform. Doorvest finds an appropriate property, remodels the property to stringent rent-ready standards, finds a long-term tenant, and resells the home to the investor. The cost of renovations is included in the purchase price. While investors directly own the property, they commit to a two-year management contract with Doorvest, with the option to renew.

Doorvest operates in select markets, focusing on growing markets with a high-potential for strong appreciation. Markets currently include Texas (Houston, Dallas, and San Antonio), Ohio (Cincinnati, Columbus), Oklahoma (Oklahoma City, Tulsa), and Georgia (Atlanta).

Feature Summary:

Roofstock:

• Offers a variety of investment options, including purchasing existing rental properties, newly built homes, and shares of tracking stock tied to SFR portfolios.
• Provides due diligence support, including property market ratings based on key metrics
• Offers introductions to vetted local property management companies.
• Simplifies the investment process with comprehensive property information, tenant details, and transparent rent history.
  

Doorvest:

• End-to-end real estate investing covering sourcing through property management
• Handles renovations and guarantees a rent-ready property for one year after closing.
• Guarantees rental income for the first 12 months, even if the property is vacant.
• Offers an investor portal for tracking cash flow, property activity, legal documents, and reports.
• Can source specific investment homes based on investor criteria.

Pros and Cons:

Roofstock:

Pros:

• No requirement to use Roofstock's property management services, flexibility in selling properties
• Diverse property options available across multiple real estate markets
• No upfront earnest money deposit required

Cons:

• No minimal condition of homes
• No guarantees to support financials on listings
• Financing requires a substantial minimum investment
• Additional capital may be needed for ongoing maintenance and improvements

Doorvest:

Pros:

• Streamlined, hands-off investment approach
• Renovations and rent-ready guarantee for one year
• Rental income guarantee for the first 12 months
• In-house property management with dedicated property managers
• Transaction fees are baked into the property price (listed at market value based on local comparables)

Cons:

• Includes two-year management contract with Doorvest
• More limited market availability

Roofstock or Doorvest: How to Choose?

Both Roofstock and Doorvest offer solutions for remote SFR property investment, but they cater to different investor preferences. Roofstock is ideal for those who want direct control over their investments, with options to choose properties, conduct due diligence, and manage properties independently. Doorvest, on the other hand, suits investors looking for a hands-off approach, where the platform takes care of property selection, renovations, tenant placement, and management.

The choice between Roofstock and Doorvest depends on your level of involvement, investment goals, and comfort with remote investing. Roofstock offers greater flexibility and control, while Doorvest provides a convenient, turnkey solution for those seeking a more passive investment experience.