Roofstock, an online platform for buying and selling single-family rental homes, recently announced a new program designed to enable investors to buy a share, not all, of a single-family home. Such fractional investors would collect a return on investment without having to be a landlord.
“Roofstock One” is taking the responsibilities for financing, insurance, easing, property management and asset management on single-family rental properties for as little as a $5,000 investment. For those responsibilities and actions, Roofstock One then retains a minimum 10% ownership in each fractional property for at least one year.
Returns from Roofstock One to fractional investors may come in various forms such as potential dividends, tax benefits associated with real estate ownership and/or price appreciation on the single-family rental investment.
Single-family rental homes involved with the Roofstock One fractional ownership program are currently located Atlanta and Indianapolis. Roofstock One investors, unlike full-share Roofstock investors who have the discretion to select single-family rental homes properties as investments throughout the country, can only invest in fractional-share properties in Atlanta and/or Indianapolis if/when this program expands into other cities.
Roofstock intends Roofstock One to be a program that enables investors to diversify their investment portfolios across multiple properties than less than buying one property. Currently, Roofstock One is a stand-alone fractional investment program in single-family rental homes.