Roofstock for turnkey rental properties

7 Replies

Hi @Stacy Siska , I am not experienced with Hipster Investments of Roofstock, but I wanted to give you a little information about full-service turnkey. The turnkey option means that you don’t need to do any of the rehabbing the full service turnkey company does all of the work on their time and dime. The turnkey company has networks and systems in place to find the best properties and rehab to a high standard and quality. This also means that you won’t have to worry about vacancy risk during the rehab process.

Closing happens after the rehab is finished and inspections are passed, this means that you
won’t have any risk during the rehab stage. The turnkey company benefits from the spread
between what they put into the property and the market price they sell to you.

Your returns will come from cash flow each month and, presumably, long-term appreciation, this is not guaranteed. Going with the turnkey option means that you've traded extra potential return from forced appreciation for the luxury of having your time and energy back and having someone else do
the hard work for you!

I hope this helps you a bit with your choice of turnkey companies!

Best of luck!!

Originally posted by @Stacy Siska :

Anyone use roofstock or hipster investments for turnkey rental properties? Thoughts?

I don't believe they are really a Turnkey Provider. A TRUE Provider does everything in-house. They would own the property first, renovate it in-house, place a tenant, and then finally sell it to you as an investor. They would also stay on as a property manager after the sale, they would not just send you off to some third-party.

The key is that everything should be done by the same group from start to finish. 

Originally posted by @Stacy Siska :

Anyone use roofstock or hipster investments for turnkey rental properties? Thoughts?

Roofstock is a marketplace geared towards investors.  There are properties marketed on the site that need little to no work, but it wouldn't be considered turnkey.  I have no experience or insight with Hipster.  

 

Hey Stacy, just so you know... we are all kind of different players in turnkey world. Us and Roofstock operate differently, which is also different from the direct turnkey providers themselves. You wouldn't be buying properties directly through us or Roofstock. We are similar in that we work with the people who offer the properties directly, but how we do that is very different (who we source from, etc.)

What are you looking for in terms of turnkeys, and maybe I can help better direct you.

Originally posted by @Stacy Siska :

Anyone use roofstock or hipster investments for turnkey rental properties? Thoughts?

 Biggest thing to understand about Roofstock is it's just a marketplace. IE it's like Loopnet. So your results will vary greatly based an many many factors completely out of the purview of Roofstock.

@Stacy Siska if you do a search here on BP you will find several threads on Roofstock and varying opinions. Here is a good thread to look at but the old adage applies Buyer beware. 

https://www.biggerpockets.com/forums/92/topics/670569-roofstock-review-newbies-beware?highlight_post=4434386&page=1

@Stacy Siska Please let me know if you have any questions about Roofstock that I can answer. I work at Roofstock and have also purchased multiple properties through the marketplace. Please note that we are much different than Loopnet. We are a curated marketplace for investment properties.

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