Real Estate Analysis Airbnb Rental Calculator: The Ultimate Tool for Airbnb Hosts in 2018 by Eman Hamed September 11, 2018January 27, 2019 by Eman Hamed September 11, 2018January 27, 2019 Airbnb hosts, have you heard of the Airbnb rental calculator? It’s no secret that successful real estate investors use a number of tools to help them get where they are. If you’re not in on that secret, then you’ve been missing out, my friend! At Mashvisor, we like to introduce investors and property owners looking to make money in real estate to the best investment tools. If you’re renting out a house on Airbnb as a short-term rental, the Airbnb rental calculator is one tool you should definitely look further into. What Is an Airbnb Rental Calculator? If you’ve been in the real estate investing game for some time now, you’ve probably heard of the investment property calculator. This online tool allows property investors to analyze how profitable a certain property is for investment purposes. There are many websites that offer this investment tool and, in case you don’t already know this, Mashvisor happens to provide one as well. What’s different about our tool is that it projects readily calculated returns for both traditional AND Airbnb investment properties across the US housing market based on traditional and predictive data. Thus, our investment property calculator can also work as an Airbnb rental calculator. Using our calculator, a real estate investor enters the assumed costs associated with an income property (such as the purchase price, expected rental income, expected monthly expenses, etc.). The investment property calculator then does automatic calculations and provides an estimation of the return on investment and profits expected from this property (whether as a traditional rental or an Airbnb rental). As an Airbnb host, this will help you assure that renting out on Airbnb as a short-term rental will achieve your goal of making money in real estate. To learn more about how we will help you make faster and smarter real estate investment decisions, click here. Data Provided by the Airbnb Rental Calculator Let’s take a further look at the important numbers and projections property investors get from this real estate investment tool for making smart investment decisions: 1) Cash Flow Cash flow is simply the difference between the monthly rental income and monthly expenses. Property investors always aim to invest in positive cash flow properties as these are the best and most profitable in the market. The Airbnb rental calculator allows you to plug in all expenses for your income property and subtracts them from the Airbnb rental income. Thus, with this real estate investment tool, you can calculate cash flow before you even buy the property to be rest assured that you don’t end up with a negative cash flow one. Related: How to Turn a Negative Cash Flow Rental Property into a Positive Cash Flow Rental Property 2) Airbnb Cap Rate The capitalization rate (cap rate) is a key return on investment metric that the Airbnb rental calculator provides both on the property level and neighborhood level. The cap rate shows a real estate investor what kind of return on investment he/she will receive by comparing the annual income to the property’s purchase price. With this knowledge, property investors can find properties and locations with high Airbnb cap rates to ensure the success of their short-term investment properties. 3) Airbnb Cash on Cash Return This is another real estate metric that shows you the return on investment in terms of how much money the income property makes compared to how much money you invest in it. While you may be able to do cash on cash return calculations for a property, it’s difficult to do so on the neighborhood level. With an investment tool like the Airbnb rental calculator, however, it’s possible to find the cash on cash return for an entire location! This way, property investors assure not only investing in the right Airbnb rental, but also in the right location where Airbnb is the optimal rental strategy. Related: 10 Most Profitable Airbnb Locations for Cash on Cash Return 4) Airbnb Occupancy Rate The success of short-term investment properties mainly depends on the occupancy rate (i.e. how many days is the income property occupied at a given time). Airbnb hosts typically can’t make good rental income without a high occupancy rate. This is important because it basically means that there is a strong demand for short-term rentals in the real estate market. The Airbnb rental calculator shows you the Airbnb occupancy rate of different locations instead of having to gather such data manually. This way, Airbnb hosts can easily find the best places to invest in Airbnb rentals with high occupancy rates for a successful investment! To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here. Uses of the Airbnb Rental Calculator As a real estate investor or an Airbnb host, you’ll need the help of this real estate investment tool to: 1) Find the Right Location As you should already know, the optimal strategy to rent out a house (long-term vs. short-term) depends on which one has a higher demand in the real estate market. With the knowledge of the above-mentioned numbers, Airbnb hosts can assure that their location or market of choice does, in fact, make a good place for investing in short-term rentals as a way to make money in real estate. 2) Access Real Estate Comps One way to decide if you’re investing in the right place is through real estate comps. These are properties similar to yours that were sold recently in the same area. Property investors try to find at least 3 comps. Rather than doing this manually, our Airbnb rental calculator lets you see other Airbnb rentals in your area with their numbers so you can easily use them as comps, saving you time which you would otherwise spend on analyzing each individual property and comparing it with the others. 3) Analyze the Investment Property After determining that renting out for the short-term is the optimal strategy in your location, you’d want to ensure that your property is the best one out there. With the data and analytics provided by the Airbnb rental calculator on both the neighborhood level AND property level, Airbnb hosts can easily perform an investment property analysis. This analysis will further prove which the optimal rental strategy is to assure making the most as a real estate investor. Related: How Should You Use Real Estate Analytics to Your Advantage as an Investor Airbnb Rental Calculator – Bottom Line Whether you’re renting out a house on Airbnb or you’re looking to buy an investment property to rent on the short-term rental site, the Airbnb rental calculator is the ultimate real estate investment tool you need to make the right decisions! Sign up with Mashvisor to get your hands on our investment property calculator or click here to start your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount after! Start Your Investment Property Search! START FREE TRIAL Start Your Investment Property Search! START FREE TRIAL 0 FacebookTwitterGoogle +PinterestLinkedin Eman Hamed Eman is a Content Writer at Mashvisor. With a focus on market reports, she enjoys researching the state of the real estate market in different cities across the US. Eman also writes about trends, forecasts, and tips for beginner investors to gain the confidence and knowledge they need to make wise decisions. Previous Post The Ultimate Guide to Becoming a Landlord of Multi-Family Real Estate Next Post How Making Money with Rental Properties Can Make You Rich Related Posts What Return on Investment Property Should You Expect in the US Real Estate Market? What’s a Real Estate Investment Calculator and Where to Find the Best One? Real Estate Return on Investment: What to Expect Real Estate Investing Terminology: Internal Rate of Return (IRR) The Use of Predictive Analytics in Real Estate Investing What Are Real Estate Comps and How to Easily Find Them in 2021? What Is Positive Cash Flow to Property Investors? All You Need to Know How to Be a Successful Real Estate Investor with Mashvisor Successful Airbnb Investors Use This ONE Tool and You Should Too! How Much Should I Charge for Rent? 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