Behind every successful real estate investment stands a realtor, who has performed diligent real estate market analysis. Nowadays, with the constant development of technologies, the way real estate investors perform market analysis also gets more advanced. There are many tools which can help you grow your real estate investing business and make money from it. One of the most useful and beneficial real estate tools is the investment property calculator. There are thousands of different rental property calculators online. Have you ever wondered which one is the best? We have the answer: Mashvisor’s investment property calculator! We will reveal why that is so, but first, let’s talk a bit more about the investment property calculator in general.
Related: An Investment Property Calculator Is a Must. Read Here Why
The Investment Property Calculator
The investment property calculator is a real estate tool, taking the place of the old real estate market analysis method of using a pen and spreadsheets. In this sense, the calculator is much more time efficient. This is due to the fact that realtors do not have to collect data, enter it manually, and analyze it later. Additionally, by using the investment property calculator, real estate investors minimize the risk of miscalculation. Therefore, they get much more accurate results when conducting real estate market analysis or investment property analysis. Furthermore, this real estate tool can be easily accessed from any place at any time. This is extremely useful as real estate investors do not need to carry tons of spreadsheets and spend time searching for the needed information.
The investment property calculator is a great helper if you want to make money with real estate investing. The tool is used by many in search of the best real estate investments. The reason behind this is the fact that the rental property calculator computes various real estate metrics and indicates whether or not a property is a good investment opportunity. Another benefit of this real estate tool is the function for comparing various real estate properties simultaneously. In this way the realtor can fully grasp the pros and cons of each one and choose the best real estate investments for his/her business.
Related: Your Best Friend in the Real Estate Investing Business? The Investment Property Calculator!
Mashvisor’s Investment Property Calculator
Typically, the main disadvantage of the investment property calculator as a real estate analysis tool is that it might be pricey. Well, Mashvisor’s investment property calculator is affordable and easily accessible as well as fast. Most importantly, it provides real estate investors with the most accurate results possible. When we review Mashvisor’s investment property calculator, it is necessary to say that it calculates the usual real estate metrics such a tool computes. These are, specifically:
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Cash on Cash Return
Cash on cash return is often used in real estate transactions as it calculates the net operating income over the total cash investment. Cash on cash return is an indication of whether or not a real estate property would be a good investment decision.
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Cap Rate
The cap rate is used as an estimation of the investor’s return on all cash real estate properties. The cap rate is computed by dividing the net operating income by the market value of the investment property. Real estate investors use this metric for various reasons such as: searching for the best real estate investments; calculating the market value of an investment property; deciding how much to charge for rent; etc.
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Rental Income
The investment property calculator computes the potential rental income a real estate investor would receive from a specific investment property. Needless to say, this is an essential metric when it comes to residential real estate investing.
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Cash Flow
The cash flow of an investment property is a simple, yet very important real estate metric. It represents the monthly rental income generated by the investment minus the expenses associated with it. In order to make money in real estate investing, owning positive cash flow properties is of key importance. Therefore, the cash flow analysis is an extremely powerful tool in choosing the best real estate investments.
Related: Mashvisor’s Investment Property Calculator: Real Estate Investing Made Easier
Why Does Mashvisor Provide You With the Best Investment Property Calculator?
As previously described, Mashvisor’s investment property calculator offers all the standard computations investment property calculators offer. However, there is a reason why Mashvisor’s investment property calculator is the best amongst them all. Here are some of its unique benefits and characteristics:
#1 Neighborhood Analysis
Mashvisor’s investment property calculator reveals detailed analysis about the chosen neighborhood for investment. Moreover, the tool offers one unique characteristic: the Mashmeter. The Mashmeter shows the real estate investor if investing in a particular neighborhood would be a good or a bad investment decision. The provided score is presented in percentage, based on both qualitative and quantitative data analysis.
#2 Investment Property Analysis
The investment property analysis section does much more than to simply provide real estate investors with insightful information about specific properties. This characteristic also allows realtors to be more interactive with Mashvisor’s investment property calculator. As a result, investors can enter estimated numbers in the real estate tool and understand the potential performance of their real estate investment.
#3 Advice on the Optimal Rental Strategy
Besides providing valuable information such as Airbnb occupancy rates, Mashvisor’s investment property calculator also gives advice about the optimal rental strategy. The tool shows real estate investors a comparison between the potential of the property as an Airbnb rental and a traditional rental. Choosing the optimal rental strategy is crucial for the success of every residential real estate investing business.
#4 Advanced Financial Analysis
Mashvisor’s investment property calculator allows you to select the financing method for your investment property. If the method is through mortgage, the tool lets you enter your down payment, loan type, and loan amount as well as interest rate. Surely, this provides real estate investors with more precise cash flow analysis. Additionally, you can enter the expenses associated with your rental property. There are two types of costs: one-time expenses and reoccurring expenses. This will provide you with a better understanding of your residential real estate investment property and the costs related to it.
Are you looking for the best investment property calculator in town? Mashvisor is the right place for you!
