When you embark on a new investment strategy, it makes sense to find out as much information as possible before signing on the dotted line. A great way to uncover more about your options is by taking advantage of investment property analysis.
If you’re thinking about investing in short-term rentals because you like the idea of becoming an Airbnb host, you need to look for the best Airbnb analytics platform. With the right tools and investment property analysis, you’re better equipped to create your real estate investment strategy,
There are plenty of avenues to explore, but in this post, we’re going to compare two of the most popular sources: AirDNA vs. Mashvisor tools.
What is AirDNA Market Data?
AirDNA offers two main services: Market Minder and Investment Explorer.
MarketMinder is a web app that provides various metrics for Airbnb rentals around the world. Using the AirDNA market data, you can better understand a local market or research much further afield. It is a paid-for service that is charged on a per neighborhood basis.
Investment Explorer is also a web app, but in this case, it combines Airbnb analytics and data with home value data. It can give you AirDNA market data for more than 750,000 properties in the US. You can decide on the most profitable short-term rental investment location using the data. This service is also subscription-based by US states.
What Tools Can Mashvisor Offer?
So, what about Mashvisor and the tools it offers? Mashvisor provides a range of Airbnb market analysis and Airbnb market data that is valuable for anyone considering an Airbnb investment property.
If you’re new to real estate investing, you might be struggling to know where to start. Of course, you want the best rental property, but how do you go about looking?
The most obvious place to start for first-time investors is in their neighborhood. However, this is not necessarily the best place because there’s often a wealth of opportunities out of state. Quite often, out-of-state properties will be more affordable and offer a higher return on investment.
The best real estate software platform will be one that provides investors with the option to conduct a nationwide property search as efficiently as possible.
The Mashvisor team has developed two tools you can use for this purpose: Property Finder and the Mashvisor Search Engine.
Property Finder is a Mashvisor tool suitable for both beginners and more experienced property investors alike. It allows you to look for the most profitable Airbnb investment properties for sale. You can search in up to five markets simultaneously, and you can also narrow your search with the help of several filters. The filters include:
- Location (you can search in multiple cities in the US housing market simultaneously)
- Rental strategy (short or long-term rental)
- Property type
- Property price
- Number of bathrooms
- Number of bedrooms
The software uses machine-learning algorithms to search for rental properties that match your requirements. Then, to make things more convenient for you, the software sorts the properties into decreasing order of Airbnb cash on cash return. At the top of the search results, you’ll find those short-term rental properties that will bring the highest rate of return. Detailed analysis is also available relating to the investment potential of each of the properties in your search results.
The Mashvisor Property Marketplace
Another search engine that lets you look for potential rental properties in other places is available. In the Mashvisor Property Marketplace, you’ll find off-market properties, foreclosures, and MSL listings. Again, a range of filters allows you to narrow your search considerably. The filters include:
- Property type
- Financing method
- Number of bedrooms and bathrooms
- Airbnb rental income
- Airbnb cash on cash return
- Airbnb cap rate
If you click on any of the properties that fit your search criteria, you’ll be redirected to a page that has comprehensive investment property analysis.
Does AirDNA Offer a Short Term Rental Property Search?
Do AirDNA market data tools allow for such searching? You can analyze the investment potential of any property in the US housing market, but you have to enter an address. This is a critical feature, but you have to have a property in mind to use it.
Beginners and first-time investors might not be familiar with available properties for sale. Therefore, the two Mashvisor property finder tools are more helpful.
Rental Property Analysis
AirDNA market data and Mashvisor tools are both Airbnb analytics platforms. However, some significant differences are worth pointing out.
One major difference between the two is the availability of a mortgage calculator. AirDNA market data tools do not feature a mortgage calculator, whereas Mashvisor tools include one.
Using a mortgage calculator, you can do a more detailed analysis of your property investment and consider your financing method. You can expect very different results in terms of return on investment, depending on whether you pay cash for your real estate investment or use a mortgage.
With the Mashvisor rental property calculator, you can precisely determine what return you’ll get on the cash you spend purchasing your property and then renting it out. Estimates for the cash on cash return for Airbnb properties are not something the AirDNA market data provides.
Another critical factor for any kind of real estate investment analysis is comparing rentals. By looking at how similar Airbnb properties perform, you can gauge how your short-term rental will perform.
Mashvisor and AirDNA offer lists of Airbnb rental comps for each analyzed property. However, the list from Mashvisor is much longer and more comprehensive.
The Mashvisor tools also provide Airbnb occupancy rate data. You can also download the list and analyze the data at your own pace and in your own time.
How Accurate is the Airbnb Data?
Any analytics platform is only as good as the data it collects and analyzes. This is especially true when it comes to real estate investing. So, where do Mashvisor and AirDNA get their data from?
This is one area where the two are similar as they both get the majority of their short-term rental data directly from Airbnb itself.
There’s no guesswork or approximations involved because the analysis is based on the performance of bona fide Airbnb properties.
That being said, the difference is in the methods each platform uses to obtain average values. For example, AirDNA market data is calculated using the means, whereas Mashvisor uses the medians.
But what difference does that make? The Mashvisor approach is a more accurate one. It’s also more robust and reliable. This is because the median eliminates outliers (data points that differ significantly from other observations). Outliers can cause serious problems in statistical analyses. They have the potential to misinform and skew the analysis.
Mashvisor data is also more accurate for another reason. It only uses verified Airbnb listings with three or more Airbnb reviews. This ensures the data comes from actual Airbnb hosts who have been renting out for a while. It doesn’t include homeowners who tried Airbnb but didn’t like it.
One final difference is in the accuracy and reliability of the data. Mashvisor pulls the property data directly from the MLS, which is a reliable and accurate source. AirDNA, on the other hand, gathers its data from public records, which are known for featuring a certain degree of error.
When you invest in real estate, there are several rental strategies you can adopt. For example, you can go down the short-term rental route through Airbnb. Alternatively, you might choose to rent out your property on a long-term basis, which is the more traditional rental.
Both AirDNA and Mashvisor cater for the short-term rental strategy. However, Mashvisor also supports a long-term rental strategy.
Being able to analyze both short and long-term rental strategies is one of the most significant advantages of the Mashvisor tools. You may have your mind set on short-term rentals and Airbnb properties, but it’s always a good idea to look at your real estate investment property from other angles.
Let’s take a look at a couple of reasons why you shouldn’t disregard a traditional long-term rental strategy.
Regulations and Restrictions
While Airbnb rentals generate a higher return on investment, on average, they are often subject to stricter restrictions and regulations. For example, in some areas in the US, short-term rentals are restricted or even prohibited.
The property you buy today may be in an area where Airbnb is legal. But who knows what will happen a week, a month, or a year from now. You may need to switch your rental strategy to stay on the right side of the restrictions.
Is Short-Term Rental Right for You?
People often think that being an Airbnb host will be a walk in the park, but that’s not true. This kind of short-term rental strategy can be a lot of hard work. You might think you’ve picked the right rental strategy, but it might not be suitable for you.
Of course, there’s the option of hiring an Airbnb management company, but that will come at a cost. A few months down the line, if you decide that Airbnb rentals are not for you, Mashvisor tools can help you with a new long-term rental strategy.
You could find yourself facing either of these scenarios, so it helps if you can search for a property that offers an above-average rate of return for both strategies.
The final aspect to consider when comparing AirDNA vs. Mashvisor is the cost of both options.
One advantage of AirDNA is that some of its data is available for free. However, it won’t be long before you realize you’ve not got enough information to make your real estate investment decisions. Another downside with AirDNA pricing is that you have to pay for each city market individually. As you can probably imagine, if you’re not 100% certain of the area where you want to invest, or you need to compare several markets, AirDNA can work out to be very expensive.
Mashvisor, on the other hand, may not have any free options, but when you’re searching for and analyzing properties across the country, it works out to be more affordable.
What Other Tools Are Available From Mashvisor?
Mashvisor offers a range of other useful tools for property investors. Here are some more examples of what’s available:
Investment Property Calculator
With the investment property calculator, you can determine the cash flow and profits that an income property can generate. The most up-to-date data and trends are used for the analysis, and you can also input data for a highly accurate estimate.
The Real Estate Heatmap
You can use this tool to conduct neighborhood analysis and home in on markets it would be profitable to invest in.
The real estate heatmap software creates a map that identifies areas with the most affordable listing prices. It also highlights areas with the highest rental income, cash-on-cash return and shares Airbnb occupancy rate data.
Real Estate Agent Directory
There may come a time when you want or need to sell your real estate investment, and it’s always advisable to use the services of a real estate agent. This real estate professional will help facilitate the process, but how do you go about finding the best one?
Mashvisor’s comprehensive real estate directory can help you find an agent in any US housing market, no matter how big or small. You’ll find the following information in the directory:
- Phone number
- Real estate website
- Real estate license
- Real estate experience
- Areas served
- Agent specialties
- Agent experience
- Office agents
- Real estate blog posts
- Active listings
- Off market properties
AirDNA Market Data vs. Mashvisor Data: Final Thoughts
You’ve now got all the information you need to help you make an informed decision about the best Airbnb analytics platform. If you think Mashvisor has everything you need and more, a free trial is available, so why not sign up right away? Start out your 7-day free trial with Mashvisor now.