The process of getting into residential real estate investing can be summarized into two parts: searching and investing. The latter obviously constitutes the bulk of an investment’s time, but it strongly depends on the former. Searching for an income property refers to actually finding a property and conducting the appropriate analysis needed. Real estate investing leads to a high return on investment, but, at the end of the day, it is an involved process. Is it possible for there to be an easy way to search for the best real estate investment opportunities?
How to Find Investment Property: Two Common Ways
The first step of investing in the best real estate investments is to find them. There are two main ways of doing this. The older of the two methods is the traditional method. This consists of relying on word-of-mouth, physical advertisements, and/or professional help, such as from real estate agents and realtors, to locate properties.
There is nothing wrong with using the traditional method to find income properties. Another method, however, is far superior, and even implements many aspects of the traditional method. This method is the real estate software method. Often utilized online, real estate software, such as Mashvisor, is the most efficient at locating the best real estate investment opportunities. Why is software so accurate and helpful? It’s all because of real estate investment tools.
The Power of Real Estate Investment Tools
Real estate investment tools have revolutionized the way we find the best places to invest in real estate. The same can be said with how they find the most profitable investments. These tools, such as the investment property calculator and heatmap analysis tool, are backed by predictive analytics. Predictive analytics allows the real estate software to forecast the best real estate investment opportunities based on the most recent data and real estate trends.
Related: Using Predictive Analytics Makes Real Estate Investors Rich
How Investment Tools Can Find the Best Real Estate Investment Opportunities
How exactly do investment tools find the most profitable investments? They do so in three ways. Investment tools analyze top locations for investing, search for the most profitable rental properties in an area and break down a selected income property.
Side note: You can learn more about Mashvisor’s real estate tools, such as its investment property calculator, by clicking here!
1.) Analyze the Best Places to Invest in Real Estate
You’ve heard it so many times: The three most important factors when finding the best real estate investments are location, location, and location. This is the case when it comes to any of the best real estate investment opportunities, whether it’s a vacation home rental property or a commercial shopping center. So, how exactly do real estate tools help find the best places to invest in real estate?
The answer is by using a heatmap analysis tool, or heatmap for short. Backed by predictive analytics, a heatmap will list different areas based on selected criteria. For instance, an investor interested in an Airbnb investment with high return on investment can adjust the heatmap to display the areas in a city that fit the description. The best heatmaps, such as Mashvisor’s (pictured below), are very interactive with investors, allowing them to measure locations based on many different metrics. Using this handy tool, investors can find the best neighborhoods with high cap rate properties in no time.
2.) Scour the Area for the Most Profitable Rental Properties
Once a location is set, the next step of finding the best real estate investment opportunities is to narrow it down to a property from the available listings. This part of buying an investment property may appear daunting. Thanks to real estate software tools, however, it really isn’t.
After using the ever-reliable heatmap, investors can choose a neighborhood and view the most profitable rental properties using a few property filters. These include, but are not limited to, return on investment (cash on cash return and cap rate), rental income, your budget and financing, traditional versus Airbnb investment, among other factors.
What’s most impressive about using a heatmap analysis in combination with these key filters (and all other modern real estate tools) is its efficiency. Mashvisor’s heatmap analysis and filters, for instance, allow investors to search for the best real estate investments in 15 minutes or less!
Related: Finding an Investment Property: Traditional vs. Mashvisor
3.) Break Down the Selected Income Property
The final step in finding the best real estate investment opportunities is to analyze a selected investment property. Doing so allows the investor to fully understand the property’s investment capability, as well as quantify and qualify it against other potential properties.
How is such vital analysis conducted? Using another helpful real estate tool: the investment property calculator. The calculator, also known as a rental property calculator, computes data relating to an income property. The data is obtained through predictive analytics and current trends. Examples of this data relate to a property’s profitability, such as rental income, return on investment, and rental expenses. The calculator, like the heatmap analysis, can be interactive. Mashvisor’s certainly is, and it can adjust its data based on an investor’s inputs, such as budget and mortgage.
Using an investment property calculator is of utmost importance before agreeing to any real estate deals, as it informs the investor of what is ahead with the property. Like the heatmap, a rental property calculator is essential when looking for the best real estate investment opportunities.
Related: Rental Property Calculator: Just for Beginners or a Tool for All Real Estate Investors?
Where to Get the Tools You Need to Find the Best Real Estate Investments
After reading this blog, you might be wondering: “Where can I find the best real estate investment opportunities?” The answer is quite simple: Use the website on your screen right now! Mashvisor’s real estate tools are like no other. They allow investors to search for properties in a matter of minutes and learn how to make money in real estate. Our tools apply to both traditional and vacation home rental property, such as Airbnb rentals. To get a taste of finding the best real estate investment opportunities, click here to start your 14-day free trial with Mashvisor!
