If you know what you are doing, buying an investment property can be a lucrative venture with long-term financial rewards. However, not all investment properties will generate good returns. Therefore, it’s important that every real estate investor knows how to evaluate deals. Luckily, you don’t have to use spreadsheets to find the best investment properties. With the right investment property calculator, you can do your investment property analysis easily and more accurately.
But again, not all calculators are made the same. If you want an investment property with a great rate of return, you will need to use the best real estate calculator you can get. You might be surprised how much you can gain from using an excellent real estate investment calculator.
So, what is the best calculator for real estate? In this blog, we are going to look at the best real estate calculator for investors and how to use it to analyze your next real estate deal. Keep reading!
What’s the Best Real Estate Calculator?
Generally, an investment property calculator should help you analyze potential real estate deals or assess existing rental properties. There are many calculators out there that can be used for analyzing investment property. However, some calculators can offer so much more than that. You can significantly increase your chances of success if you pick the right one.
In light of how much you can get from using an investment property calculator, Mashvisor’s calculator is by far the best. I know this is a bold statement, but after reading this blog, you will understand why. The fact is that not all rental properties for sale will be good for you. However, the special features of Mashvisor’s real estate calculator can help you to accurately decide whether or not to buy a particular property and avoid making costly mistakes. So, how can investors benefit from this real estate investment software? Let’s now see how you can use this tool to make better investment decisions.
How to Use Mashvisor’s Real Estate Calculator
Mashvisor’s real estate calculator is very user-friendly. Anyone can use it to estimate the potential returns of a rental property regardless of their experience. All you have to do is enter some basic details about the investment property that you intend to buy and the calculator will work out the rest for you. The data you enter will involve the following:
The first step is to select your financing method, which can be either through cash or mortgage loan. Secondly, you need to enter the purchase price of the property. Mashvisor’s real estate mortgage calculator makes this process easier for you by providing readily available property data for the listing price and property value. You can choose the price you are willing to offer or key in a custom price.
If you have picked the mortgage option, you will be required to specify the loan amount, loan type, the amount of down payment, and the mortgage interest. All this data is important because it will impact your return on investment (ROI). Therefore, you can play around with these numbers to see what would give you the best ROI.
2. Property Expenses
In this section, the user can fill in both one-time costs and ongoing costs associated with the investment property. With the best real estate calculator for investors, you will automatically get most of these rental property expense estimates based on the location of the property. However, you can do your own market research and adjust the rental property expenses provided and/or add your own unique expenses.
Property Metrics Provided by Mashvisor’s Real Estate Calculator
After entering the required details, the calculator will find estimates of a number of real estate metrics. You can then download a PDF report of the results. These metrics will determine whether the investment property for sale is worth buying or not. They include:
1. Cash Flow
Cash flow refers to the difference between monthly rental income and monthly rental expenses. Every investment property should be treated as a business that can either make a profit or incur a loss. If the rental property expenses are more than your rental income, then the investment property has a negative cash flow. Therefore, you will need to put in some of your own money each month to cover the deficit.
If your investment property has a positive cash flow from the time it was purchased, it means that you will have a surplus each month. This makes investing in cash flow properties more desirable to investors. With our calculator, you can easily know whether an investment property has good cash flow.
2. Cash on Cash Return
When looking for the best real estate calculator, cash on cash return is one of the important ROI metrics it should be able to calculate. Cash on cash return (CoC return) is usually used for analyzing investment property financed with a mortgage loan. This real estate metric shows real estate investors their possible returns based on the total amount of cash invested.
3. Capitalization Rate
Capitalization rate (cap rate) is used for analyzing the returns of an investment property without considering the method of financing. It is the ratio of net operating income (NOI) to the current market value of an investment property. Since the financing method is not taken into account, this ROI metric is ideal for use in comparing multiple rental properties.
What Are the Special Features of Mashvisor’s Calculator?
The best real estate calculator should offer more than what other basic calculators do. That’s precisely what our calculator does. Apart from the important real estate metrics, Mashvisor’s rental property calculator has these unique features:
1. Optimal Rental Strategy
If you are looking for the best real estate calculator app, you should consider Mashvisor’s because it can effectively help you to examine the potential return of a rental property for both rental strategies (Airbnb and traditional). Our calculator shows the above real estate metrics for both strategies as well as the Airbnb occupancy rate. Therefore, a user can compare the two strategies and accurately determine the optimal rental strategy for a particular investment property for sale. If you are looking to invest in short-term rentals, Mashvisor’s Airbnb income calculator is the best to use.
2. Rental Comps
To accurately analyze investment property, you will need to look at other comparable properties in the market. Our calculator provides rental comps for all rental properties for sale on the platform. This allows you to compare investment properties that meet your criteria based on a particular metric.
3. Neighborhood Analysis
Another unique feature that makes Mashvisor’s calculator the best real estate calculator for investors is the insights from historical and predictive analytics. Based on these insights, you can know the performance of the market in which an investment property is located. This way, you will be able to invest in only the best locations. As you know, location has a significant impact on the performance of an investment property.
4. Investment Payback Balance
Based on the current stats, the calculator can show you the amount of profit expected from a rental property for up to ten years. This can be seen in the Payback Balance section of the tool.
5. Contact the Listing Agent
If you have analyzed an investment property for sale and are satisfied with the numbers, the calculator allows you to easily contact the listing agent and proceed with the deal.
The Bottom Line
In order for you to properly assess the profitability of a real estate deal, you need to use the best real estate calculator you can get. Forget the guesswork and use Mashvisor’s real estate investment calculator to accurately analyze investment properties in a matter of minutes.
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