Roofstock is launching a platform to buy SFR properties and allow investors to purchase stakes in them for as little as $5,000.
Both American Homes 4 Rent and Invitation Homes have faced tenant lawsuits recently.
In the past, individual investors owned more than 80 percent of single-family rentals. Since then, the number has fallen significantly.
As competition for existing SFR assets intensifies, investors increasingly look at development.