Have you ever wondered if there is a tool that can help you in deciding if a real estate property is a good investment opportunity? Wonder no more! Here is your best friend in the real estate investing business – the investment property calculator! “What about the good old spreadsheets?”, you may ask. Well, the investment property calculator offers you much quicker results. Additionally, you can easily compare different investment properties simultaneously. It saves you time and effort and provides you with relatively precise results. Intrigued? Keep reading to find out more information about the investment property calculator.
What Is an Investment Property Calculator?
The investment property calculator is a real estate investing tool, which has changed the way investors perform real estate market analysis. This real estate tool simplifies the process of investment property analysis too. Thus, it saves a lot of time and effort. This is due to the fact that real estate investors do not have to collect the data, enter it manually using spreadsheets, and then analyze it. The investment property calculator does all the work for you. Besides the numbers, the calculator is used as an indicator of whether or not it is a good idea to invest in a specific real estate property.
What Are the Advantages and Disadvantages of an Investment Property Calculator?
As every other real estate investing tool, the investment property calculator has some pros and cons. It is important, however, that the advantages outweigh the disadvantages. Let’s review some of the most important features:
Accurate real estate analysis
The investment property calculator provides real estate investors with precise results. The real estate tool hides much lower risks of error in comparison to the old school spreadsheets method.
The real estate investing tool can be accessed from any mobile device. This is extremely convenient as real estate investors do not have to remember numbers or carry multiple spreadsheets. One click and you can access all the data you need for your future real estate investments.
As previously mentioned, the investment property calculator can save a lot of time. This is because you do not need to enter the data for your investment property analysis manually. Additionally, it is easier to compare multiple real estate properties at the same time. Thus, it is easier and quicker to choose the best real estate investment for your business.
Might be Costly
The main disadvantage of investment property calculators is that they might be costly. Most of the real estate platforms, which offer the tool, charge a fee for using it. There are also free versions of the real estate tool available, but they offer only limited functions.
How Does the Investment Property Calculator Operate?
The investment property calculator provides a real estate investor with predictive outcomes about a rental property. These predictive outcomes are the result of computations of pre-entered cost assumptions, associated with the investment property. This real estate tool calculates many different things, and some of the most important ones include:
Cash on Cash Return
Cash on cash return is the net operating income over the total cash investment. It basically calculates the cash income earned on the cash invested in the rental property.
The cap rate represents the rate of return on a real estate investment property. This rate of return is based on the rental income that is expected to be generated from the investment property. The cap rate calculates the net operating income over the current market value of the real estate investment property.
The rental income is, simply put, the money that a landlord collects from the tenants, occupying his/her rental property.
Related: Cap Rate vs. Cash on Cash Return
What about Mashvisor’s Investment Property Calculator?
The investment property calculator, which Mashvisor offers, is the ultimate rental property calculator on the market. Why is that so? It is affordable and fast, but not only. Here are some of the other reasons:
Provides Unique Additional Data
Mashvisor’s investment property calculator computes the most important indicators such as cap rate, cash on cash return and rental income. It, additionally, provides the option to see potential and existing real estate investors’ cash flow. This is another useful feature in choosing the best real estate investment. Besides this, the real estate tool provides unique data such as Airbnb occupancy rate. Furthermore, Mashvisor’s rental property calculator operates efficiently and provides the real estate investor with the most accurate data possible.
Detailed Neighborhood Analysis
Mashvisor’s investment property calculator also provides you with detailed neighborhood analysis in your chosen location. After the neighborhood has been selected, you can also access complete investment property analysis. Another useful feature is the Mashmeter.
The mashmeter is a unique function, which only Mashvisor offers to real estate investors. This simply shows you if a real estate investment in a certain neighborhood is a good or bad real estate investment decision.
Suggests Optimal Rental Strategy
When it comes to real estate investing, the ultimate goal is to make money. With Mashvisor’s advice, this is easier to achieve. The rental strategy is of extreme importance when you are renting out your investment property. Mashvisor’s rental property calculator indicates if it is better to rent out your property through traditional rentals or Airbnb rentals. Placing your rental property on the right market is of extreme importance for your success in real estate investing.
This option purely helps by showing a real estate investor the best opportunities for real estate investment properties, matching his/her criteria.
Precise Criteria Selection
Mashvisor’s investment property calculator allows a real estate investor to precisely select the computing criteria. For instance, it provides you with the option of selecting the financing method – mortgage or cash. Therefore, the real estate investing tool is able to provide real estate investors with a better understanding of the investment property analysis.
We can confidently say that the investment property calculator is your best friend in the real estate investing business. However, some rental property calculators are better than others. Mashvisor’s investment property calculator, for instance, is the best choice for any real estate investor, who aims to be successful in his/her business.