It’s no secret that buying a property for Airbnb can be quite an intimidating process. This is mainly due to the fact that you need to conduct various types of investment property analysis to ensure you will be making money with Airbnb.
Needless to say, while conducting computation manually, there is always a risk of making a mistake. Moreover, it is quite hard to gather all the necessary data on your own and it takes a long time, too.
Luckily, the market already offers real estate investing tools which can ease the process. In fact, there is one specific tool designed to complete investment property analysis for short-term rentals. Yes, we are talking about the Airbnb income calculator.
#1 What Is the Airbnb Income Calculator?
The Airbnb income calculator (aka Airbnb profit calculator) is a real estate investing tool similar to the popular investment property calculator. The difference here is that this tool is specifically designed to deal with Airbnb analytics.
As you can imagine, a tool which is precisely created to tackle the research of a specific rental property type will provide much more precise and insightful results. Therefore, you can fully rely on this tool for your Airbnb real estate investing needs as it has access to all the rental data you need and can provide you with accurate results in a matter of seconds.
Related: The Beginner’s Guide to the Airbnb Income Calculator
#2 What Does an Airbnb Profit Calculator Actually Compute?
As we have already discussed, the Airbnb income calculator eases the job of real estate investors by providing them with the necessary data, metrics, and results that they need to start making money with Airbnb.
Rather than speaking too general on the topic, we decided to present you with the key indicators that the Airbnb income calculator uses. This way you will see how to find investment property effortlessly and what to look for when buying an Airbnb rental property.
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Airbnb Occupancy Rate Data
In order to select positive cash flow properties in the Airbnb market, you’ll have to take a look at Airbnb occupancy rate data. This is a vital measurement when speaking about Airbnb real estate investing simply because Airbnb properties are rented out for a short period of time.
Therefore, there should be a constant flow of guests in order to ensure profitability. The occupancy rate reveals exactly this. There is no need to mention that the higher the occupancy rate, the higher the rental income.
As you can imagine, however, collecting this data on your own is nearly impossible. Luckily, the Airbnb income calculator has all the information ready for you to select the best Airbnb properties for sale.
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Airbnb Income Estimate
Of course, the end point of investing in an Airbnb rental property is making money. That is why having the ability to see your Airbnb income estimate is so useful. With this info, you’ll be able to estimate how much to charge per night, how to switch your pricing strategy according to the season as well as how much money is worth putting into the investment property.
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Airbnb Return on Investment
The return on investment is possibly the most widely used metric in real estate and that is not by accident. Metrics of Airbnb returns such as return on investment, cash on cash return and cap rate, even though simple and well-known, can provide you with quite essential information.
Such metrics indicate the performance of the selected income property in percentages. That is very useful when trying to decide between several Airbnb investment properties as you can easily compare them and choose the one that will generate a higher profit.
Related: What Is a Good Return on Investment for Rental Properties?
#3 Why Is the Airbnb Profit Calculator Useful?
The Airbnb income calculator is useful for various reasons. However, here are some of the most important benefits it presents to real estate investors in the sphere of short-term rentals.
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Finding the Best Place to Buy Airbnb Property
Instead of wondering how to find investment property, you should use this tool. As previously mentioned, the tool provides you with the needed results for investment property analysis in a matter of seconds. This way you can easily research and get insightful information for all the areas of interest. But did you know it can do the same for a location?
For example, Mashvisor’s Airbnb income calculator has a cool function called the Mashmeter. This option shows you how worthy a neighborhood is for buying an income property.
You can also see if different neighborhoods in a city are suitable for investing in Airbnb properties based on rental income, cash on cash return, and occupancy rate data.
Related: Airbnb Rental Properties – The Best and the Worst Places to Invest
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Selecting the Best Rental Properties for Airbnb
It is absolutely true that this Airbnb tool can help you select and invest in the best rental properties in the short-term rental market. This is because:
- It can help you in selecting positive cash flow properties with high Airbnb occupancy rate.
- The tool can present you with insightful information about the property as well as the estimation of its future performance.
- You can easily get valuable information for many different Airbnb properties for sale. This will ensure you find the most profitable property that will be the perfect addition to your real estate investing portfolio.
To Sum It All Up…
The Airbnb income calculator is a great tool for every real estate investor, regardless of their status, experience, and success level. The tool provides you with essential information such as ROI, estimated income, and Airbnb occupancy rate.
Moreover, you get the results in no time and avoid the risk of making a miscalculation while doing analysis by hand. Last but not least, you can use this tool to find the best Airbnb properties for sale to boost your career! Of course, Mashvisor will be by your side in the process. To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.