Why is investing in a real estate property considered difficult and time-consuming? To answer, it is because there are a lot of aspects you must keep in mind when considering the investment. When looking at a real estate investment, you must consider many factors to understand its value and condition. For you to do this justly, you must qualify its different aspects, ranging from cash on cash return to occupancy rates. In order for you to calculate such metrics, you must use their formulas and make sure that you don’t overlook any relevant information. Make sure you give each aspect its value, neither belittling its worth nor overestimating it. Therefore, it would be much more convenient for you to use a cash on cash return calculator.
Because we humans are not machines, it would be rather difficult (if not impossible) for us to find the results in pristine condition. For example, we would likely overlook a part of the calculation or even forget a decimal point, rendering our results useless and unreliable.
If you want to avoid such unfortunate events, your first step would be finding a cash on cash return calculator.
What Is a Cash on Cash Return Calculator?
Also known as a real estate investment calculator, this tool enables you to calculate the general valuation metrics of a rental property. This is invaluable for real estate investors especially during property valuation and investment property analysis.
The calculator allows you to find the information you need about a property’s cap rate, cash flow, occupancy rate and of course, cash on cash return. Traditionally, you would have had to research the property, its location, and its neighborhood to find these results. Now you just need to insert the required information regarding the metric, and the calculator provides you with the results. Even then, you would have access to another feature of the Mashvisor cash on cash return calculator: analysis.
After finding you the figures you need, the cash on cash return calculator also provides you with analysis based on and about these figures. Sometimes, looking at numbers is not enough to understand the whole picture, and that is why Mashvisor provides you with predictive analysis. For instance, it provides you with real estate market analysis in addition to neighborhood analysis. Whether it is about selling your rental property or buying a new investment, you can use this information to ease your decision-making process.
What Values Does It Calculate?
The cash on cash return calculator qualifies values from different aspects of a rental property starting with:
This aspect of an investment is a paramount one. It tells you the return of an investment per year. Meaning that it calculates the return on investment based on the cash you invest on it annually. It is calculated by dividing the net operating income (NOI) by the total cash invested. The NOI is all the cash received as income from a rental property (example: from the rent). The total cash invested is what you put in an investment whether it is a recurring expense or a one-time thing. An example would be buying furniture for the house or closing fees.
- Cash flow
Your main goal in an investment is making money of course! This value tells you if your project is prospering, stable, or declining. It shows you the amount of money you earn as opposed to the expenses of the investment. You can use cash flow to calculate your profit before taxes.
You can find this value by dividing your net operating income by the property’s value. This metric is useful in determining whether the property’s price is good or not.
Where Can I Find the Best Calculator?
At Mashvisor of course! Indeed, the Mashvisor Cash on Cash Return Calculator is the best one thanks to its convenience, easy use, and excellent results. The ultimate goal with a real estate investment property is making money. Because of this, you want investments with high cash on cash return and positive cash flow. The calculator will help you find these properties, and of course, provide you with the figures. As well as calculating all the aforementioned metric values, it provides you with insights regarding location. By the use of heatmaps and real estate comps, the cash on cash return calculator helps you select the ideal location for your rental property. In addition to avoiding bad locations, it helps you find money-making areas based on neighborhood analysis.
Mashvisor will also aid you in choosing the type of investment property and your optimal rental strategy.
To learn more about how Mashvisor can help you find profitable investment properties, schedule a demo.
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You can gain a lot just by using Mashvisor. It will help you compare returns on investments in different neighborhoods within a short time. You can also customize research so that the results are related to what you are searching for. To elucidate, Mashvisor lets you enter in criteria of what you want. The search will then fit that criteria only. So say you are looking for the highest cash on cash return properties, by making that a criteria, Mashvisor will provide you with the options you need. You won’t be sidetracked by irrelevant info not relating to cash on cash return.
The cash on cash return calculator will save you a lot of time and effort. If you are either in the researching stage or property valuation or analysis, the calculator is the perfect tool for you. It will perform research that might take months if done manually, and will also give you explicit results. The cash on cash return calculator is a capital tool for real estate investors and will also help them make optimal investment decisions.
If you are interested in doing well with a real estate investment, then the cash on cash calculator is perfect for you. Designed to give you accurate and excellent information, as well as invaluable analysis and comparative data, Mashvisor will provide you with information, advice, tips, and strategies. By having thorough knowledge of a rental property’s aspects and conditions, you can form a capital plan.
Sign up with Mashvisor today to find the best deals on investment properties across the US!