Doorvest experience journal

[Harris Lee]

Hello BiggerPockets, 

I'm going to start a thread that details my investment journey with Doorvest (https://doorvest.com) . Doorvest claims that they help identify, purchase, and own rental homes for a littles as 35K and help generate cash flow.

At the moment, I'm little skeptical but wanted to give it a try and write each steps here (good or bad) and help the community here. 

My very first step was signing up and Doorvest books an appointment with you. I received an email as shown below. My first appointment with them is early May, so i will updated how the meeting went and answers to questions that I have for them as well.

How it Works:

We’re a full-service real estate investing company simplifying rental property ownership.

• We work with you to spec out a home. Build your home criteria based on investment goals, risk profile, returns desired, holding timeline.
• After the framework is filled out, our acquisitions team will start curating a selection of homes specifically for you to choose from. Once you’ve chosen a home, we buy it, renovate it, place a resident, and offer it to you for purchase.
• Once you become the homeowner, we transition into a property management role and handle the day-to-day operations of the rental.

The Numbers:

We specialize in single-family rental homes in the $160-250k range, with an average price of $170k-$190k. The ideal home price for you will depend on: 1) downpayment size 2) risk appetite, 3) preference for more cash flow or appreciation.

• Given our price points, our investors need to have 35-45K to start, on average.
• The typical cash-on-cash return on our properties net of loan payments, insurance, taxes, and property management fees is 6-8%.
• Ultimately, you can obtain financing from any lender, although we have partner lenders that can provide very competitive rates.
• Our customers typically get a 30 year fixed mortgage with a 20-25% down payment. You can structure your home with an LLC, or even invest with multiple people.

Peace of Mind:

• 1-Yr Rent Guarantee: We guarantee rent for the first year, so no matter what you will receive your rental payments uninterrupted and you’ll be making money from day one.
• We only ask for a 1-yr commitment to working with us as property managers. Beyond that year, there are no commitments and no restrictions to what you do with the home. You are also not committed before you purchase the home, and can back out at any point.