When investing in real estate, one of the most crucial steps that any real estate investor will have to take is the process of searching for investment properties that are suitable for them and that match their investment goals.
One of the first questions that any real estate investor should ask themselves at the start of their venture is “how to find investment properties?”
There are several methods that real estate investors can use to find investment properties that are for sale. Traditional methods include driving around a neighborhood and looking for “for sale” signs or reading the newspaper to see if there are any properties that are listed for sale.
However, in the age of the internet, there are new and more effective methods and tools that you can use to find investment properties, and one of these methods is the property finder tool.
Before I get into the details on how to find investment properties using a property finder tool, let me first explain what a property finder tool is.
Property Finder Tool
A property finder tool is a digital tool that is used to find investment properties based on the user’s preferences and search criteria.
A user, for example, might be interested in a specific type of property in a certain city. The property finder tool will allow them to easily set their preferences by using filters, and the tool will provide them with a list of properties that match their criteria.
Not all property finder tools are the same, however. Most property finder tools will typically utilize the type of data that their website or platform has in order to provide listings based on that data.
Mashvisor’s property finder tool, for example, utilizes a wide range of data comps, analytics, and metrics to provide real estate investors with lists of investment properties that have the highest potential for returns.
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
The tool will take into consideration the investor’s budget, desired returns, and property type to provide the real estate investor with a list of properties in their city/cities of choice that have the highest potential for profits based on their cap rate, cash on cash return, and occupancy rate.
Related: How to Find the Best Investment Property Using a Heatmap
How to Find Investment Properties Using Mashvisor’s Property Finder Tool
To help you understand how useful the property finder tool can be, I will use Mashvisor’s property finder tool as an example to show you how to find investment properties using this tool.
The first thing that you will want to do when using a property finder tool is to set your mind on a certain city or a few cities that you’re interested in investing in.
Choosing a City/Cities
Using Mashvisor’s tool, you can either select one city or multiple cities that you are interested in.
This will provide you with a list of the best properties for investing in the cities that you have selected. Keep in mind that the results that you get will only show properties that are viable for your investment preferences and search criteria. This means that it is possible that you won’t get any listings in one of the cities that you have selected if that city did not have any properties that match your preferences.
Additionally, Mashvisor’s property finder tool allows you to set a radius for your search, which only works when you have a single city selected.
This filter allows you to control the distance that you would like the properties to be from the city that you have selected, allowing you to focus your search on properties that are closer to the city center depending on your interest.
Setting Your Preferences
How to find investment properties that are most relevant to your investment preferences?
Mashvisor’s property finder allows you to set certain preferences in order to give you a list of properties that are most suitable for you and that meet your search criteria.
The main filters that you will be able to use here are:
- Budget
- Rental strategy
- Number of bedrooms
- Number of bathrooms
The budget is the most important filter here, as it allows you to filter out any properties that are below or above the target price point that you have in mind.
The rental strategy is another important filter. By default, it will be set on all property types. However, you will have the option to narrow down the results to only include short-term/Airbnb rentals or long-term/traditional rentals, depending on which one you’re most interested in.
Finally, you can set the number of bedrooms and bathrooms that you would like the property to have based on your investment strategy and how you intend to use the property.
The Results
The main purpose of the property finder tool is, of course, the results. The results that you get can be different depending on the tool that you’re using.
Some tools might give you a list of properties that have the highest rental income, for example. While others might give you a list of investment properties that have the lowest vacancy rate.
Mashvisor’s property finder tool will give you a list of properties that have the highest overall rating based on Mashvisor’s data and analytics.
The results will take into consideration the property’s
- Cap Rate
- Cash on Cash Return
- Occupancy Rate
- Rental Income
- Listing Price
- Walk Score
- Neighborhood Score
Related: Investment Property Calculator for Analyzing Real Estate Investments
in addition to a number of other aspects. The tool utilizes a unique formula that takes all these aspects into consideration, and it gives each aspect its own weight to provide you with a list of properties that will have the highest potential for returns and that are most suitable for you as well as for the market that you are investing in.
Bottom Line
How to find investment properties? Use a property finder tool.
How to find investment properties using a property finder tool? Use Mashvisor’s property finder tool. It is simple to use, comprehensive, and the results will always be the most relevant based on your personal preferences.
To start your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount after, click here.
Learning how to find investment properties using a property finder tool is only your first step. You still need to analyze the different investment properties and compare them to find the perfect one for your investment.
Related: Real Estate Investing 101: How to Find Positive Cash Flow Properties in the US Housing Market
Luckily, Mashvisor’s platform has a number of other features that will allow you to obtain analytics and compare the different properties with ease and in a short amount of time. Whatever your investment needs are, and whichever stage you are at, Mashvisor can help you out.