How can I find the best rental properties? This is a question that many real estate investors ask continuously. No matter if you’re an experienced or beginner real estate investor, this question is always roaming around in your head. With the right real estate investment tools, your search for the best rental properties can be accomplished with ease. So without further ado, let’s discuss the most important real estate investment tools that real estate investors need to find the best rental properties.
Find the Best Rental Properties Using a Cap Rate Calculator
A commonly used metric in real estate investing is the cap rate. Cap rate is used to measure the return on investment for a rental property. For real estate investors looking to make a profit and generate positive cash flow, finding the best rental properties with a high cap rate is crucial. That is why you need to calculate the cap rate when performing a property search to ensure you find the most profitable investments.
Another important thing to keep in mind when looking for the best rental properties in accordance to cap rate is the level of risk associated with the investment property. Theoretically, low cap rates correspond to a lower level of associated risks and vice versa. So the best rental properties are typically the ones with higher cap rates- higher risks yield higher profits and that’s just what we’re looking for.
As you can see, the cap rate metric is very important when performing a property search. This is why real estate investors need to use a cap rate calculator. This is a particular type of rental property calculator. The cap rate calculator helps you analyze your rental property which is important when choosing the best rental properties. This real estate investment tool is easy to use and easily accessible online. It helps real estate investors calculate values such as the property’s net operating income, current market value, and the cap rate itself.
Related: Where Can You Find the Best Cap Rate Calculator for Your Real Estate Investments?
Find the Best Rental Properties Using a Cash on Cash Return Calculator
Another important metric used in real estate to determine the rate of return on investment is cash on cash return. It is very often confused with cap rate. While both are similar in one way or another, cash on cash return has an extra spin to it. Unlike cap rate, cash on cash return takes into account the financing method an investor used (all cash or mortgage) in its calculation.
The cash on cash return calculator is another type of rental property calculator that is needed when looking for the best rental properties. This real estate investment tool helps real estate investors find the best rental property based on their preferred financing method. So let’s say for example that an investor wants to purchase a rental property using a mortgage loan. Using this calculator, he/she can play around with the down payment level, the loan amount, the type of loan, and the interest rate to find the best rental properties that match the search criteria. The same goes for investors purchasing a property with full cash.
This tool saves real estate investors a lot of time and energy. It allows property investors to analyze the profitability of different properties and compare them to pick the one that has the highest cash on cash return. Thus, in short, using a cash on cash return calculator is essential when searching for the best rental properties.
Read Also: A Cash on Cash Return Calculator Is a Must for Successful Real Estate Investors
Mashvisor Has BOTH of These Tools
You’re probably wondering where can you find a rental property calculator that can calculate both the cap rate and cash on cash return. At Mashvisor of course! Our rental property calculator is easy to use and allows you to calculate all the necessary values related to your rental property. In addition to calculating the cap rate and cash on cash return, our tool will also help you calculate your property’s cash flow and occupancy rate in a matter of minutes.
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
Find the Best Rental Properties Using a Property Finder Tool
A property finder tool is a very popular digital tool that is used to find the best rental properties based on an investor’s search criteria and preferred rental strategy. Some investors may prefer to invest in long-term rentals (traditional rentals) while others prefer to invest in short-term rentals (Airbnb rentals). The property finder tool allows investors to set their preferences by using filters and filter out properties that don’t match. This will give them a list of the best-performing properties in their chosen city.
Here at Mashvisor, our property finder tool is like no other. Our tool makes use of a wide range of data comps, analytics, and metrics to provide real estate investors with lists of investment properties across the US housing market with the highest potential for profits. Our tool also takes into consideration your budget, type of property, and rental strategy. Finding the best rental properties cannot get easier than this!
Do you have a free Mashvisor account? Click here to use our Property Finder and find properties in a matter of minutes!
Related: How to Find Investment Properties Using a Property Finder Tool
Find the Best Rental Properties Using a Heat Map
A heat map is used in our everyday lives in many fields including real estate investing. Using a heat map allows real estate investors to find the best neighborhoods to invest in any city- ones with the best-performing properties that generate the highest return on investment for the optimal rental strategy.
Mashvisor also provides real estate investors with a heat map tool. Our tool will enable investors to easily locate the best areas with easy to read visuals that are color-coded depending on their search criteria. Our heat map analysis makes finding the best rental properties an easy process. Not only can you find properties with a high return on investment, but you can easily spot which rental strategy is most profitable for the location of your choice!
Read Also: Finding Income Properties Using a Heatmap
The Bottom Line
It’s easy to find the best rental properties, all you need is the right real estate investment tools. With the growing technology and developing real estate websites, it has become harder to decide which tools are worth using. Don’t waste your time searching for different tools that are scattered everywhere. Mashvisor has all the necessary tools to make your property search stress free and they’re all found in one place with a click of a button.
To start your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount after, click here.