For a long time, buying an investment property has been a lengthy and time-consuming process. An aspiring real estate investor would need time and experience to learn the process of how to find and then buy investment properties. This includes performing a real estate market analysis in addition to an investment property analysis. Fortunately, this is not the case anymore in today’s real estate investing business.
Thanks to technology, property investors now can make use of real estate investing tools to make the process of buying an investment property much less complex. Mashvisor, in specific, offers property investors with the best real estate investing tools and turns 3 months worth of research into 15 minutes!
If you’re an aspiring real estate investor, keep reading to learn how to use Mashvisor when buying an investment property.
Neighborhood Analysis cash on cash return
To begin your journey with Mashvisor, enter the city (or cities) in which you’re considering buying an investment property. The first thing you’ll see is the various areas and neighborhoods in that city and the number of listed properties in the neighborhood.
You will also get crucial numbers in real estate investing which property investors use to compare different neighborhoods and decide which is the most profitable for buying an investment property. These numbers include the median property price, average square foot price, average rental income, occupancy rate, average cash on cash return, and average cap rate.
A summary of the neighborhood, as well as a valuation analysis (detailing the performance of investment properties similar in type, number of bathrooms and bedrooms, and distance), is provided.
Mashvisor also has a heat map feature that allows property investors to assess the neighborhood and find income properties much faster using visual cues. For example, a real estate investor can set the heat map to show areas with the highest cash on cash return, and the heat map will highlight which areas are hot or cold for this feature. Using this real estate investing tool ensures property investors that they’re buying an investment property in the area with the highest potential return on investment. After all, the location of your income property is KEY to a successful real estate investing career.
Related: Location Location Location: What Makes for the Best Place to Invest in Real Estate?
Find an Investment Property
The next step to buying an investment property with Mashvisor is to find investment properties in the chosen neighborhood. Using our Investment Property Finder Tool, property investors will be provided with a list of the best income properties depending on their preferences and search criteria. Some of the ways to get optimized results include:
- Budget filter: The real estate investor can filter out any income properties that are below or above the target price point in mind.
- The rental strategy filter: This filter is set on all investment property types. However, property investors have the option to narrow down the results to only include short-term (Airbnb) rentals or long-term (traditional) rentals, depending on which one they’re most interested in.
- Property investors can also filter the number of bedrooms and bathrooms that they would like the income property to have.
- If you’re thinking of buying an investment property of a certain type (single-family home, condo, townhouse, etc.), you can specify that as well.
Using these filters allows property investors to compare different income properties to get a sense of their performance in the neighborhood and, ultimately, find the best income property that matches their set preferences and real estate investment goals.
To narrow down your choices even more, you can adjust the investment property financing method. For example, property investors buying an investment property with a mortgage can enter the loan type and their down payment (the interest rate is set based on the area). The minimum cap rate and cash on cash return can also be chosen. After setting your budget and expected rental income, Mashvisor will display income properties that match your standards.
To find investment properties that perfectly meet your investment criteria, click here!
Investment Property Analysis
Buying an investment property without analyzing it first is the biggest mistake a real estate investor can make. Thus, after finding an income property that interests you, use Mashvisor’s Investment Property Calculator to determine whether it’ll make a profitable investment.
This real estate investing tool allows property investors to input some basic information about the investment property (such as the purchase price, the financing method, the cash investment, etc.), and it’ll then provide them with all the important numbers needed to decide whether or not to go for this income property.
The main values that the investment property calculator allows property investors to analyze are rental income, cap rate, cash on cash return, cash flow, and occupancy rates (for both Airbnb and traditional investments). The real estate investor is then provided with a score (shown as a percentage) that is used to evaluate the profitability of buying an investment property. Naturally, the higher the percentage, the better the investment potential.
Buying an Investment Property
This is the end of your journey with Mashvisor. After analyzing the neighborhood you want to buy in, finding investment properties, and analyzing them to find the best one, the time has finally come to make the purchase! This part relies on you, so remember to reach out to your bank and get pre-approved, share the reports and valuation analysis provided to you with your real estate agent, and don’t hesitate to make an offer.
Buying an investment property has never been so simple and so quick. Instead of taking months to find and analyze market aftermarket and property after property, use Mashvisor and get the job done in no time.
Sign up for Mashvisor and start finding the best and most profitable investment properties in the US housing market within minutes!
