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In Episode 63, we welcome Gary Beasley and Gregor Watson, co-founders of Roofstock. If you\u2019re one of our listeners who has written in requesting an episode on rental real estate, be sure not to miss this one.\nWe start with some quick background on the guys, how they came to found Roofstock, and the way in which their company is aiming to make rental real estate investing far easier. In essence, they want to simplify things by separating the \u201cinvesting\u201d side of rental real estate from the \u201coperational\u201d side of owning a rental home.\nAfter the background, Meb starts with a broad, contextual question: So how would a new rental real estate investor start?\nIn the old way, you would identify a market in which you\u2019re interested, look at tons of homes, make some offers, perform due diligence on the ones where the offers have some traction, renegotiation the price and finally buy, then find a property manager to handle operations for you.\nBut the guys then tell us how Roofstock is making this traditional process far simpler. Basically, the home and rents, tenant, and local property manager have already been vetted and approved. You see the various yields ahead of time. This enables investors to buy without all the traditional brain-damage. The guys tell us \u201cOur goal is to make it incredibly easy to get exposure to the asset class (rental real estate).\u201d\nWhat follows is a wonderful discussion about some of the traditional challenges with rental real estate, and how Gary and Gregor are helping investors overcome those challenges. The discussion touches on how to compare rental homes across different markets\u2026 Evaluating rental homes via gross yield, net yield, IRR, and on an after-tax return basis\u2026 How Gary and Gregor arrive at rental home valuations\u2026 Financing versus all-cash buying\u2026\nThere are also great tidbits of rental real estate investing wisdom dropped in. For instance, did you know that the total cost to a home-seller to vacate, spiff up, and sell is about 10-12% of the sale price? Did you know that the average cost of a property manager is about 7-8% of collected rents plus a separate leasing fee? Guess what percentage of rental real estate owners live within about an hour of the homes they own? You\u2019ll find out\u2026\nLater in the episode, Meb asks about the range of yields on the various rental homes featured on Roofstock; specifically, why wouldn\u2019t he invest in a handful of homes yielding, say, 25% versus those yielding just 5%? Is there a parallel here to high-grade bonds and junk bonds?\nThe guys tell us, yes, lower yielders tend to be the safer investments, whereas the higher-yielding homes are a bit riskier. But both potentially have a place in a rental portfolio, depending on the needs/goals of that investor.\nThere\u2019s much more in this episode: the difference between buying single-family homes directly versus investing in a REIT\u2026 How to think about starting and building a rental real estate portfolio\u2026 How much time an investor would need to commit to being a landlord when not using a property manager\u2026 What happens if there\u2019s another 2007\u2026 And Gary and Gregor\u2019s single best piece of advice to listeners interested in starting with rental real estate investing.\nWhat is it? Find out in Episode 63.\nLearn more about your ad choices. Visit megaphone.fm/adchoices