Doorvest Review [2024]: Rental Properties without the Management Headaches

Doorvest is a real estate investment platform that can offer you access to rental properties. You can invest in these properties without the hassle of traditional real estate investing.

The Doorvest platform is simple and convenient to use and offers detailed information on the properties listed for sale. Once you make an investment, Doorvest helps you manage your rental property in exchange for a management fee. Learn more in this Doorvest review.

Key takeaways

• Doorvest uses a simple and convenient method for investing in rental properties.
• Doorvest offers home renovation and rental income guarantees to better support your investment.
• The platform gives you access to property data, market analysis, and other important information to help you make informed investment decisions.
• Doorvest charges a 10% management fee of rent for its property management service, which can impact the overall returns on your investment.
• Doorvest is expanding, with properties available in Atlanta, Columbus, Cincinnati, Dallas, Houston, Oklahoma City, San Antonio, and Tulsa.

Doorvest: Is it worth it?

Pros	Cons
Offers a simple and comprehensive rental property investment platform Helps you in choosing a rental property to invest in Renovates the property on your behalf and offers a 12-month renovation guarantee Manages the property and tenants for you with no tenant placement fees Offers a three-month rental income guarantee	Requires a minimum investment of about $45,000 Charges a higher management fee than some rental management companies Doesn’t offer the same level of control of a direct purchase
Our verdict: Doorvest offers a unique investment opportunity for people interested in investing in rental properties. The company uses a simplified process for finding, renovating, and renting out a property that makes it easy to own a home without ever having to visit it. However, this comes at a high entry point of $45,000 or more, a relatively high management fee, and a lack of control over your rental home.

What is Doorvest?

Doorvest was founded in San Francisco, CA in 2018 by co-founder and CEO Andrew Luong and co-founder and CTO Justin Kasad. 

The company’s goal is to democratize the path to financial security by allowing people to invest directly in residential real estate in a simple and frictionless way. It achieves this by enabling you to buy rental properties entirely virtually and then managing those properties on your behalf.

Minimum investment	Varies based on mortgage requirements and home price but expect at least $45,000
Management fees	10% of the rent
Features	Doorvest finds the home for you Doorvest manages the property for you Doorvest offers a quality renovations guarantee Doorvest offers guaranteed rental income for the first three months Doorvest doesn't charge resident placement fees
Investment time frame	Ideal for long-term investors
Best for...	People comfortable investing in real estate outside of their local market that value simplicity over profits.
	Visit Doorvest

What does Doorvest offer?

Homes listed on the Doorvest platform often require at least a $45,000 minimum investment as a downpayment. Doorvest currently allows people to invest in residential rental properties in the following markets:

Atlanta, GA Columbus, OH Cincinnati, OH Dallas, TX

Houston, TX Oklahoma City, OK San Antonio, TX Tulsa, OK

The company mentions it may invest in other markets in the future but does not provide a timeline. 

Doorvest's process

Doorvest typically purchases three-bedroom, two-bathroom, single-family homes with two-car garages built after 1970.

These rental homes generally attract long-term residents and appreciate the most, according to Doorvest. That said, the property you purchase will be based on your specific needs and budget, so this may vary.

After Doorvest purchases a property, it renovates it, then sells it to one of its customers, earning a profit in the process.

This means that a single Doorvest customer would own a home on their own, which is different from real estate investment services such as DiversyFund.

DiversyFund sells partial shares of a rental property using a real estate crowdfunding model where several people are partial owners.

Learn more in our DiversyFund review.

Doorvest's management model

After you purchase a home through the service, Doorvest manages the rental property for you for at least one year. For this service, they charge a management fee of 10% of the rent collected.

This management model means that you would pay zero management fees if there is no tenant in your rental property, which incentives your assigned property manager to find long-term tenants.

Doorvest selects tenants based on several factors, including having a credit score of 600 or higher, a household income at least three times the rental amount, and no evictions or felonies in the past five years. Doorvest also requires a positive rental reference from the tenant's current landlord.

Doorvest guarantees

Doorvest does offer a couple of guarantees to help new investors feel more at ease as they begin or grow their real estate portfolios. The first is their renovation guarantee which lasts one year from your date of purchasing the rental property. This covers any maintenance costs during the first year of ownership associated with completed renovations. The coverage is limited to $25,000 and has a long list of exceptions.

The second guarantee is a rental income guarantee. The company guarantees you’ll receive rental income for the first three months of ownership. This can help you feel at ease that you might have the cash flow to cover your costs, even if a tenant doesn’t pay rent or breaks a lease.

Who can open an account with Doorvest?

Anyone who qualifies to own real estate in the markets Doorvest operates in can open an account with Doorvest.

However, keep in mind that the minimum investment to invest with Doorvest is around $45,000. You also need a decent credit score, a suitable debt-to-income ratio, and the willingness to invest in property outside your local market.

People considering investing through Doorvest generally need to have a high-risk tolerance due to the many factors that could impact their returns. Home repairs, vacancies, weather events, and tenant issues could easily add up to thousands of dollars in unanticipated costs.

Real estate might also fluctuate in value and isn’t a liquid asset that can be sold quickly. Selling a property usually incurs real estate agent fees, so selling costs could be expensive.

Doorvest may be a good investment option for people looking to own single-family rental properties. The platform could also be ideal for people who have the finances and credit to support a significant downpayment and want full-service property management.

However, you still likely need to check in on the property yourself from time to time to verify it is being managed up to your standards.

How much can you earn with Doorvest?

The amount of money you may earn with Doorvest depends on the performance of your investment. Investing in real estate comes with risks, just like investing in any other asset. When you look at the math behind Doorvest, it’s easy to see where risk exists.

While the monthly payment for a fixed-rate mortgage shouldn’t change, homeowners insurance and property taxes can increase. If the local market allows, rent could increase to offset these costs, but renters could also fail to pay their monthly rent. Your property might also experience vacancies. Some renters may even damage your home, resulting in costly repairs.

Real estate returns are generally location- and property-dependent, as well. Your property could appreciate and help you build long-term wealth, but its value depends on its condition, specific location, the characteristics of the home, and the real estate market.

Ultimately, your returns vary based on all of these factors and more. It’s up to you to determine whether the potential gains outweigh the risks involved.

How to open a Doorvest account

If you’re interested in how to invest money with Doorvest, learning about the service is the first step. Once you’ve determined that you are interested in moving forward, opening an account should only take about five to 10 minutes.

1. Begin at Doorvest.com by entering your email along with your first and last names.

2. Decide if the markets Doorvest operates in fit what you’re looking for.

3. Get an idea of the average home price and the minimum investment on Doorvest.

4. Set some parameters for your rental property search, including price range, number of bedrooms and bathrooms, and its size in square feet.

5. Choose your investment approach.

6. Enter your credit card information to put in a fully refundable deposit. You can also select to put in a deposit later, but must put in a deposit to begin investing.

Once you submit this information, you can also schedule a 15-minute consultation call with a Doorvest representative to move on to the next step.

FAQs about Doorvest

Other investing platforms to consider

Doorvest won’t be the perfect real estate investing platform for every person. If you’re just learning how to invest in real estate and don’t feel it’s a good fit for you, consider investing with Roofstock or Crowdstreet.

Roofstock allows both accredited and non-accredited investors to buy or sell whole investment properties. But only accredited investors qualify for buying partial shares of a rental property through Roofstock One, which typically means you need at least a $1 million net worth or over $200,000 in annual income as an individual or $300,000 as a couple. Its fee structure differs from Doorvest and could be a better fit for some investors. 

Learn more in our Roofstock Review.

Another option to invest in real estate could be Crowdstreet. Crowdstreet solely works with accredited investors to invest in commercial and multifamily real estate rather than residential real estate. Minimum investments are significant and start at $25,000.

Learn more in our Crowdstreet review.

People looking for more traditional investments should check out our list of the best investment apps.

Doorvest: Bottom line

Doorvest is a real estate investment platform that offers a convenient way to invest in rental properties. You can purchase rental properties entirely virtually and have Doorvest manage the property for you in exchange for a 10% management fee of the rent.

The platform provides property data, market analysis, and other information to help you make informed investment decisions. Doorvest currently offers properties in several cities in the United States and may operate in other markets in the future. Keep in mind that you typically need at least $45,000 to invest through Doorvest.

FinanceBuzz is not an investment advisor. This content is for informational purposes only, you should not construe any such information as legal, tax, investment, financial, or other advice.