Are you looking to invest in an Airbnb property in 2021? Airbnb investing is an increasingly popular real estate investment strategy owing to the fact that short-term rentals typically generate higher returns than long-term rentals. However, not every investment property will generate good returns as a vacation rental. So, how do you find the best Airbnb properties for sale? The key to making smart investment decisions is to run the numbers.
If you are just starting out, it’s important that you learn how to determine profitability before you make an investment. While there are a number of tools you can use to estimate revenue, the quickest and most efficient way to analyze Airbnb rentals in the US housing market 2021 is to use Mashvisor’s Airbnb calculator. In this article, we show you exactly how our Airbnb calculator helps investors to estimate revenue and make smart investment decisions.
Why Should You Use Mashvisor’s Airbnb Calculator?
The Airbnb calculator is one of Mashvisor’s digital real estate investment tools. As the name suggests, it is a specific investment property calculator that is designed for those who want to invest in short-term rentals.
It uses Airbnb data and predictive analytics to quickly and accurately predict Airbnb profit. Basically, it takes the guessing out of Airbnb investment analysis and helps you to make data-based decisions. All our Airbnb data is derived directly from Airbnb.com and our calculations and analysis of that data is then verified by active hosts in the US market.
When Airbnb data collection and analysis is done manually, it may take weeks or even months to determine the potential revenue of an Airbnb investment. Until now, Airbnb spreadsheets have been the go-to tool for Airbnb investment analysis. However, apart from being prone to error, they can be time-consuming. With the Airbnb calculator, you can turn months of research into just a few minutes. As you know, time is money!
Just imagine how long it would take you to manually sort through thousands of Airbnb listings to determine their profitability. The Airbnb calculator does all the heavy lifting for you so that you can focus on other important things. All you have to do is select the investment property you want to analyze and, with a click of the button, you’ll get the key numbers you need to estimate revenue.
The good thing with this real estate investment tool is that it is easy to access and is very user-friendly. Anyone, regardless of their experience in real estate, can use it to estimate Airbnb revenue and improve their chances of success. Therefore, it allows beginner Airbnb investors to compete on equal footing with experienced investors. Ultimately, this tool will guarantee successful Airbnb investing in 2021 and beyond.
Related: Do You Really Need an Airbnb Rental Income Calculator?
What Data Does Mashvisor’s Airbnb Calculator Provide?
Once you have clicked on a property listing on the platform or entered the address of an off-market property, you’ll get access to our Airbnb calculator which will provide you with a complete investment analysis. You’ll get access to a number of important comparative data and Airbnb analytics that will help you see the kind of returns to expect.
Here’s a list of the data that Mashvisor’s Airbnb estimator provides:
1. Property Details
The Airbnb calculator will provide you with a full description of the property. This includes general details about the property such as location, number of bedrooms/bathrooms, listing price, property type, lot size, year built, number of days on the market, listing agent’s contact information, tax history, and more.
This information will help you determine whether an Airbnb investment property fits your budget and other criteria. Sticking to your budget will help you avoid defaulting on your mortgage payments and possible foreclosure.
2. Airbnb Rental Income
The first key metric that an investor needs to assess potential Airbnb revenue is the property’s monthly Airbnb rental income. Our Airbnb calculator will accurately estimate Airbnb income for you based on the daily rate and the Airbnb occupancy rate of rental comps.
The Airbnb income estimate will help you determine how much to charge as the daily rate. It will also be useful for computing your potential Airbnb profit margin.
3. Airbnb Occupancy Rate
One of the main issues with short-term rentals is that they typically face fluctuations in demand due to the seasonal nature of this rental strategy. This means that the Airbnb occupancy rate will have a huge impact on a property’s Airbnb revenue. The more days an Airbnb property is booked in a month, the more revenue it will generate.
The best way to ensure profitability and avoid cash flow problems is to use Mashvisor’s Airbnb calculator to access Airbnb occupancy rate data. It’s pretty difficult to collect this data on your own.
4. Airbnb Costs
As an Airbnb host, there are several costs and Airbnb fees that can affect your cash flow and return on investment. Mashvisor’s Airbnb calculator will provide you with estimates of your Airbnb rental expenses (one-time startup costs and recurring monthly expenses). This will help you plan for them.
The calculator also allows you to modify the values of the cost estimates and add custom expenses that are specific to the property you are analyzing. You can play around with the numbers to see how the costs affect your potential returns as the changes will be reflected in real-time.
5. Airbnb Cash Flow
As a real estate investor, buying a rental property with positive cash flow is important if you want great returns over time. You want to be making a profit every month rather than losing money.
Using your projected Airbnb rental income and costs, our Airbnb calculator will provide you with readily-calculated estimates of potential cash flow. This will help you avoid properties with negative cash flow.
6. Airbnb Cap Rate
Airbnb cap rate is a metric that is used to quickly compare the potential Airbnb return on investment of multiple investment properties for sale. As you can imagine, calculating the Airbnb cap rate manually using the cap rate formula is a daunting task. However, you don’t have to worry about this because our Airbnb calculator already has it pre-calculated for you.
7. Airbnb Cash on Cash Return
If you want to finance your purchase with a mortgage, Airbnb cash on cash return is an ROI metric that you need to estimate before making a purchase decision. With the Airbnb calculator, you can easily access this data for any Airbnb rental in the US housing market.
To get a forecast of the Airbnb cash on cash return, you’ll need to add your mortgage terms. Mashvisor’s Airbnb calculator includes a mortgage calculator that allows you to play around with the terms to determine the best financing method for you.
8. Airbnb Rental Comps
Comparative market analysis is a key process in Airbnb investment analysis since it allows you to see how other similar properties in the area are performing. Traditionally, finding Airbnb rental comps would take a lot of time. However, with our Airbnb calculator, you can access Airbnb rental comps data in a matter of minutes.
Learn More: Where to Find Reliable Airbnb Comps for Investment Properties
The Bottom Line
One of the most crucial pillars of a successful Airbnb host is knowing how to estimate revenue before buying an Airbnb property. If you want to invest in Airbnb in 2021 and generate good returns, then you shouldn’t use just any tool or online calculator to estimate revenue. Get your hands on the best Airbnb calculator for estimating returns – Mashvisor’s Airbnb calculator. This tool will help you find the most profitable short-term rental in any US housing market in just a matter of minutes with little effort on your part.
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Related: How to Start an Airbnb Business in 2021