A recent article on Curbed.com discusses how online platforms such as Roofstock and OwnAmerica have made it much easier for investors to purchase Single Family Residences (SFRs). In particular they cite Roofstock as one of many SFR investment platforms that have popped up since the housing crisis. Curbed says these new platforms make it easy & convenient as well as allowing investors to buy and own rental homes in multiple parts of the country at the same time. However, they do point out that while institutional SFR companies own around 250k SFRs most SFR landlords are “mom and pop” investors who own only one house – many of whom are landlords only after moving and renting out their previous house. In fact, they cite data showing that about 70% of SFR properties are owned by someone whose primary residence is located 10 miles or less of the rental property.
“OwnAmerica and Roofstock work like a listing service for SFR properties the same way Zillow is a listings service for owner-occupied housing. The companies don’t own the houses, but charge sellers a listings fee and advertise the home to potential buyers…After a customer buys a home on the platform, the company will help the buyer secure a mortgage if needed, and also find a property management company to handle leasing, maintenance, and rent collection, although buyers are free to facilitate these services on their own.”