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Single-Family Rental Investment Diligence - Digging into the Data

Welcome back to Roofstock and our 5-part introductory series. We hope you’ve enjoyed learning about the Roofstock marketplace, our certification process and financing so far.

As a Roofstock Investor, you have access to institutional-level data to help you analyze a given property or portfolio. We have curated some of the best and most relevant analytical tools, provided at no cost to you—everything you need to analyze, do your due diligence and invest in one place.

The Roofstock Diligence Vault & Analytical Tools:

Property Valuation Roofstock homes are priced competitively and fairly, but don’t just take our word for it. Our property valuations are a combination of data from third-party valuation experts, in conjunction with information about the condition of the home and local market trends.
Market Rents As experts in their respective markets, our local property management partners provide estimates of local rents for each property and how it compares to other rentals in the area.
Market Dynamics Our interactive map illustrates gross yields, median income, inventory levels and property values down to the zip code level, so investors can compare any property to those in surrounding neighborhoods and local markets.
Home Price Appreciation Forecasts For each property, Roofstock provides a home price appreciation forecast over a 5 year time horizon based on monthly home price appreciation data from Collateral Analytics.
Market Trends Both the property valuation report and data from property managers add additional market color from professionals about the state of the local market.
Operating Expenses We combine our past experience of managing, acquiring and financing over $4B in SFR investments to understand the cost structure of managing rental properties. We also reference local tax records and property insurance values to estimate property tax expenses.
Pro-Forma Financial Statements Your personalized assumptions are combined with our data to calculate forecasts of cash flow and returns, providing thorough projections of revenue, expense and returns for any given investment over a 5-year horizon.
Home Inspection Report and Clean Title Completed by an experienced third-party national inspection company, inspection reports provide a snapshot of the condition of the home, along with details of any needed repairs. We also verify title by ensuring that there are no outstanding liens on the property.
Neighborhood Summary Ratings for both assigned and nearby schools are available for every property, with data provided by GreatSchools. We also provide an assigned score for any factors that could affect the local neighborhood, including natural hazards and crime rates.

We encourage you to browse investments on the Roofstock marketplace. If you have any questions about the diligence or analytical materials, please feel free to contact us to learn more.

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About the author
Zach is the Director of Client Advisory Services at Roofstock.
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