Whenever the investor is eager to start making money in real estate, there is a certain step he/she should take before buying an investment property. Yes, exactly: we are talking about a comparative market analysis! Successful real estate investors know the steps of conducting real estate market analysis. Still, the procedure of performing comparative market analysis may take weeks or even months. This is where the rental property calculator comes in the game of real estate investing. Now the real estate investor is able to conduct the comparative market analysis whether he/she is planning to invest in Airbnb rentals or traditional rentals with no sweat. How is it possible? Keep on reading to find out the secret ability of the investment property calculator when buying an investment property.
#1 What Should the Real Estate Investor Know About Comparative Market Analysis?
Comparative market analysis is also known by many successful real estate investors as real estate market analysis. The main idea behind comparative market analysis is to determine the market value of the real estate investing property before the buyer offers the potential property price he/she is willing to pay. Moreover, real estate market analysis is used to determine the listing property price when working with sellers. This real estate investing research is used in order to help you select and purchase only the best real estate investments.
However, conducting real estate market analysis manually may seem like a very stressful and time-consuming activity. Let’s be honest, it is stressful and time-consuming! That is why when the real estate investor plans to succeed either with Airbnb rentals or traditional rentals, he/she needs to use the rental property calculator. Curious to learn more about comparative market analysis? Make sure to read “Comparative Market Analysis for Beginner Real Estate Investors.”
#2 What Should the Real Estate Investor Know About the Rental Property Calculator?
The rental property calculator or investment property calculator is used to ease the life of real estate investors. Moreover, with this real estate investing tool you will be able to select the most profitable real estate investments. Further, manual calculation of real estate metrics, such as cap rate, cash on cash return, etc. is in the past. The rental property calculator is a real helper in the world of real estate investing. However, we still did not explain how with this real estate investment tool the real estate investor can conduct comparative market analysis.
#3 How to Do Comparative Market Analysis with the Rental Property Calculator: Steps of the Comparative Market Analysis
Let’s explore how a rental property calculator can help in conducting comparative market analysis.
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Step One: Where to Invest for the Best Real Estate Investments
You already know the golden rule in real estate investing: location is a top priority. Consequently, choosing the wrong market will result in owning a negative cash flow property. By using Mashvisor’s rental property calculator, the investor is ensured that he/she will invest in the most profitable real estate investments. Why so? This real estate investing tool will present you the investments based on the real estate metrics, such as capitalization rate, cash on cash return, occupancy rates and so on. The greatest part of this tool is that you are able to compare hundreds of real estate markets across the US. Moreover, it will take you only a few seconds.
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Step Two: Neighborhood Analysis
Choosing a certain state and a city is only 50% of the total work. Mashvisor’s rental property calculator will present you the best area where to invest. This tool performs in-depth neighborhood analysis, which automatically eases the process of the search for the most profitable real estate investments. Curious to learn more about neighborhood analysis? Make sure to read “Neighborhood Analysis in Real Estate Investing.”
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Step Three: Real Estate Comparables
In order to determine the value of the Airbnb rentals or traditional rentals, the real estate investor should compare the investments with real estate comps. This process of comparing may take months. However, when using the investment property calculator, this process takes literally a few seconds. All you need to do is to select your preferred Airbnb rental property, for instance, and the rental property calculator will present real estate comparables.
#4 How to Do Comparative Market Analysis with the Rental Property Calculator: Investment Property Analysis
Well, let’s be honest, for some parts of a buying or selling process, you will need to hire a professional. For instance, a real estate agent might be that professional. However, the real estate investor cannot conduct an investment property analysis without calculating various real estate metrics. This should be done in order to find the best real estate investments as well as the most profitable rental income properties.
Why should the real estate investor use the rental property calculator when conducting the investment property analysis? Well, any research and analysis take time in order to get the precise numbers. Moreover, due to the heavy load of work, there is a chance the real estate investor will miscalculate the numbers when computing either cap rate or cash on cash return. Consequently, the rental property calculator comes in as a very handy tool for many successful real estate investors. Interested in getting to know more about investment property analysis? Make sure to read “Investment Property Analysis: Real Estate Investing.”
However, what is the best investment property calculator for investment property analysis? The answer is only one- Mashvisor’s rental property calculator. This tool calculates real estate metrics, such as cash on cash return, capitalization rate, rental income, etc. in no time. Moreover, having a dilemma when considering what is the optimal rental strategy is already a thing of the past. Mashvisor’s rental property calculator will suggest whether you should go for traditional rentals or Airbnb rentals as the optimal rental strategy for your rental income property. So, in order to start making money in real estate, you should use Mashvisor’s rental property calculator for the investment property analysis.
To learn more about how we will help you make faster and smarter real estate investment decisions, click here.
