What’s the Best Airbnb Data Analytics Platform for 2020?

With 2020 well underway and spring (the best time of the year to buy a house) quickly approaching, it’s time to purchase an investment property to start making money in real estate. For yet another year, Airbnb investment properties emerge as the best among the many real estate investment strategies. So, the question becomes: “How do I find profitable vacation home properties in top locations?” The answer is: With the help of the best Airbnb data analytics platform for 2020 – Mashvisor.

Don’t take our word for granted. Sign up for a free 7-day trial of Mashvisor now to start analyzing neighborhoods and rental properties for sale.

To explain why our real estate investment app is the best Airbnb analytics platform, we will show you the type of Airbnb data and analysis that you can obtain through it and why this is important for making lucrative real estate investing decisions.

Airbnb Data Analysis at the Neighborhood Level

If you’ve done any real estate reading, you will have noticed the one word which every expert keeps repeating: LOCATION. Whether you are investing in traditional, long term rentals or Airbnb, short term income properties, the real estate market – both in terms of city and neighborhood – will be a major determinant of your return on investment.

We at Mashvisor are well aware of this fact, just as we fully realize that it is impossible for beginner and part-time real estate investors to perform real estate market analysis at the speed required to compete with experienced professionals. In order to accelerate this process, we have developed a couple of real estate investment tools which allow Airbnb hosts to conduct neighborhood analysis quickly and efficiently when buying a new vacation home.

Neighborhood Airbnb Heatmap

The first real estate investment software tool to help analyze areas is Mashvisor’s heatmap. Generally speaking, a real estate heatmap is a color-coded visual representation of the neighborhoods within a certain real estate market based on a number of different criteria. Our heatmap uses red to mark areas with low values and green for areas with high values. With regards to investing in Airbnb income properties, investors can search for neighborhoods through the following filters:

• Listing price
• Airbnb rental income
• Airbnb occupancy ratae
• Airbnb cash on cash return

Related: Airbnb Rentals: Finding Income Properties Using a Heatmap

This means that the best Airbnb data analytics platform will help you focus your Airbnb investment property search on a few areas which are within your budget and offer high enough Airbnb income and Airbnb occupancy rate to result in above-average rate of return.

Related: Where Can You Find Airbnb Occupancy Rate Data for Real Estate Investing?

Neighborhood Airbnb Income Calculator

After an investor has been able to identify a few good neighborhoods for buying short term rental properties, he/she can conduct detailed neighborhood analysis with Mashvisor’s Airbnb profit calculator.

Our real estate investment software platform provides the following Airbnb data for all neighborhoods in any US housing market, no matter how big or small:

• Median property price
• Average price per square foot
• Average Airbnb cash on cash return
• Average Airbnb rental income
• Number of investment properties for sale
• Number of Airbnb listings
• Average Airbnb occupancy rate
• Optimal property type: single family home, condo, apartment, townhouse, multi family home, etc.
• Optimal number of bedrooms

How knowing the Airbnb income, Airbnb occupancy rate, and Airbnb cash on cash return dominating a rental market will help hosts identify the best places for buying a vacation home is quite straightforward. However, the rest of the Airbnb analytics is also quite important. For example, an area with a large number of rental properties for sale is probably currently a buyer’s market, which means that even new real estate investors can enter without engaging in a bidding war with homebuyers and more experienced investors. Similarly, the number of Airbnb rentals is an excellent indicator of the demand for as well as the supply of vacation homes in the neighborhood. The best property type and number of bedrooms in the ideal income property allow investors to narrow down their property search to listings with these characteristics. All these Airbnb data details come together to complete the neighborhood analysis for buying Airbnb investment properties through our platform.

Airbnb Data Analysis at the Property Level

As you can imagine, investing in a profitable rental property is not limited to choosing a good housing market only. Conducting meaningful property search and analyzing the potential of individual properties is equally important. That’s why the best Airbnb data analytics platform has to provide detailed rental property analysis too. And Mashvisor does this.

 

Here is the type of information which you can expect to find for every single Airbnb property:

Airbnb Rental Income

When conducting real estate investment analysis, one of the first figures on which experts focus is the rental income. The same holds true for investing in short term rental properties. How much money you can expect to make per month will eventually determine whether you end up with positive or negative cash flow properties and what rate of return you generate. In vacation home investing, the Airbnb income is the product of the nightly rate and the Airbnb occupancy rate. Instead of having to look for Airbnb comps and calculate the comparable income of hundreds of active listings, our Airbnb income calculator provides you with the expected monthly rate for any property right away.

Airbnb Occupancy Rate

As already mentioned, the number of days in a month or a year for which you manage to get your short term rental booked is one of the two most important factors determining its profitability. Mashvisor’s Airbnb data platform calculates the Airbnb occupancy rate of an income property as the ratio between the number of bookings and the number of available days for booking of all comparable Airbnb listings in the area over the past 12 months. Of course, that’s just an estimate, and if you believe that you can enhance your bookings by putting extra marketing efforts, you can always change this number on our highly interactive and customizable platform.

Related: What Airbnb Occupancy Rate Can You Expect in 2020?

Airbnb Cash on Cash Return

Investors go for real estate in order to make money, and the way to make money with rental properties is to have a good cash on cash return. Calculating the expected CoC return on hundreds of investment properties for sale in order to choose the most profitable one requires tons of time and efforts, which part-time investors simply don’t have. That’s why they should trust the best Airbnb investment app with this analysis. When checking what Airbnb cash on cash return to expect on a certain property, don’t forget to choose the financing method (cash vs. mortgage) most appropriate for you, and our platform will immediately recalculate all values.

Related: 20 Most Profitable Airbnb Locations in 2020: Cash on Cash Return

Airbnb Cap Rate

Successful real estate investors don’t limit themselves to the CoC return only, but also calculate cap rate. This further complicates and elongates the rental property analysis process and increases the risk of someone else closing all profitable deals before you. Our Airbnb data analytics platform eliminates this risk by acting as an Airbnb cap rate calculator as well.

Related: 2020 Cap Rates by City: What Real Estate Investors Should Expect

Recurring Monthly Expenses

To provide all the above-listed metrics of rate of return on a rental property, Mashvisor’s Airbnb profitability calculator needs to calculate how much it costs to own, manage, and run a vacation home rental property in a specific real estate market. Thus, the platform includes the following costs in the real estate analysis of Airbnb for sale:

• Property tax
• Property insurance
• Airbnb rental income tax
• HOA dues (if investing in a condo or another similar property type)
• Property maintenance
• Property management
• Cleaning fees
• Utilities

All these costs are customizable if you have strong reasons to believe that yours will be significantly different.

Cash Flow

Investing in positive cash flow income properties is a must as that’s the way to make – rather than lose – money from real estate. While the cash flow is simply the difference between the Airbnb income and the monthly rental expenses, it takes a lot of Airbnb data to calculate. No worries, once again Mashvisor’s Airbnb investment property calculator supplies this metric right away.

Property Price

The sale price of an income property is important for two main reasons. First of all, it determines whether a real estate listing is within your budget as an investor or not. Before starting searching for and analyzing rental properties, you should sit down, calculate your savings, income, and expenses, and decide exactly how much you can afford to pay for an investment property. Then you need to stick to this budget to avoid a default on your mortgage repayments and a foreclosure. That’s the last thing you want as an Airbnb host (or a landlord, for that matter). Second, the property price is factored in all measures of return on investment, whether you look at the Airbnb cap rate or the Airbnb cash on cash return. When it comes to CoC return, it is included in the size of the down payment as well as the monthly mortgage payment amounts.

One-Time Startup Costs

Don’t forget that the sale price is not the only cost you have to incur when buying rental properties, including a vacation home. There is a whole array of initial expenses depending on your financing method such as:

• Home inspection fees
• Closing fees including real estate appraisal fees
• Repairs
• Furniture which can amount to a lot when you invest in Airbnb

The best Airbnb data analytics platform is sure to provide reliable and accurate estimates of all these expenses – both for MLS listings and off market properties.

Airbnb Rental Comps

For smart real estate investors in Airbnb income properties, it is important to understand where all estimates and forecasts come from, even without conducting Airbnb investment property analysis themselves. That’s why Mashvisor’s real estate investment app provides a list of all Airbnb listings in the area which are similar to the property that you are considering buying in terms of property type, number of bedrooms and bathrooms, and other characteristics. These are known as Airbnb rental comparables, or rental comps. That are the actual listings on the Airbnb platform which our tools use to perform all analysis. As an investor, you can access them through our app or download them as a CSV file to analyze on your own or share with your real estate network.

Financing Method

Our Airbnb data analytics platform acts as a mortgage calculator as well. Very few lucky real estate investors are capable of buying rental properties in cash. That’s why the majority resort to taking a mortgage loan. The size of the down payment, the loan type, and the interest rate all affect the performance of a short term rental property and its return on investment in terms of cash on cash return.

Airbnb Data Source

The real estate data included in our Airbnb neighborhood and investment property analysis comes from two main sources: the MLS and Airbnb.com. This means that our calculations and estimates reflect actual real estate listings (with regards to property prices) and real Airbnb rental listings (in terms of daily rates, occupancy rate, and all other consequent metrics). Furthermore, our Data Team constantly assures the Airbnb data methodology accuracy be comparing it to the results of actual Airbnb hosts in the area.

Mashvisor is the best Airbnb data analytics platform in 2020 because it is not only fast and easy to use but also provides accurate investment property analysis each and every time. Sign up today to start searching for and buying a profitable vacation home in any US market.