Real estate investing has not gotten less complicated over time. As a matter of fact, the abundance of properties going on and off the market can make any real estate investor confused on where to begin real estate investing. Here comes the need for a heat map analysis to aid any real estate investor in his/her investing decision.
Heat map analysis: Defined
A heat map analysis is an online tool that real estate investors can use to find on-market properties in the form of a map. It focuses mainly on marking neighborhoods with possible real estate investments that are lucrative and displaying them in the form of a heat map to make your real estate investment search straighter to the point.
Let’s say you’re looking to invest in a certain city or area. You can search for your city and specify a neighborhood using the heat map. Additionally, real estate investors can specify measures that the heatmap can take into consideration in order to locate properties with a high return on investment.
The many faces of a heat map analysis
As for any real estate investment tool, real estate investors will have different levels to measure any investment property on. And that’s exactly what the heat map analysis does. Real estate investors can use any of the following metrics in summing up their search to arrive at the better end of real estate investing:
When looking at the importance of rental income and cash flow to your real estate investment, it makes perfect sense that the heat map analysis should incorporate a filter that takes rental income into consideration. You can simply assess how every area or neighborhood is doing by analyzing it through the heat map using the rental income filter. Therefore, using a heat map analysis and filtering your search through the rental income filter prepares you for future expectations. Additionally, with Mashvisor’s heat map, you can specify the rental income for both traditional rentals and Airbnb rentals.
In the photo below, you can see how Mashvisor’s heat map analysis looks like along with the components and filters you can choose:
Accordingly, you can choose your go-to investment strategy by simply using the heat map! You can also compare rental incomes of the same possible investment property in a neighborhood to determine which is the optimal rental strategy for you. Read this blog post for more information: How to Choose Rental Strategy: Finding Income Properties Using a Heatmap.
The listing price is a real estate metric that’s a basic filtering option to use when sticking to a budget. This option gives real estate investors the ability to filter through cities, neighborhoods, and even streets. Additionally, you can determine the listing price for properties on the market and compare them to others.
Filtering the heat map analysis using the listing price works great for you if you’re looking to invest in real estate with a budget, and to eliminate properties when they exceed your budget.
With Mashvisor’s heat map analysis, real estate investors can specify a price range. Accordingly, the AI filters available properties and omits the ones that do not meet your criteria.
Cash on cash return
The cash on cash return is a filter used as a property valuation tool. It gives the real estate investor a simple figure to indicate whether the initial cash investment in a property is worth the returns. In any case, this works by calculating the return any investment property can generate. If you’re looking for more information on the cash on cash return, read this post: Calculating Cash on Cash Return for Real Estate: An Easy-to-Follow Guide.
Airbnb occupancy rate
The Airbnb occupancy rate is a non-negligible part of real estate investing. In any case, you need this filter to know if an Airbnb investment is the right investment strategy. This metric focuses on the number of nights booked for investment properties. This is an inseparable part of running a heat map analysis and a comparative market analysis as well! You can compare areas and establish a starting point for the Airbnb occupancy rate.
Mashvisor’s heat map analysis
Mashvisor’s heat map analysis feature makes our investment property calculator unique. You will find more detailed information about each specific rental property before having to add information manually. Take this in comparison with many investment property calculators out there. At first glance, you will notice that many oblige you to fill out information manually. This can make your calculations fall for error and speculations. With Mashvisor’s investment property analysis we’ve cut out the middleman and let our AI take care of it. You can experience an almost fully-automated process to guide you as a real estate investor.
Looking for more information on conducting a heat map analysis? Read this blog post: How Should You Use Mashvisor’s Heat Map Generator to Your Advantage as a Real Estate Investor?
The concept of a heat map analysis is not a common one yet in the real estate investing world. However, it’s an available and accurate online tool that any investor can use. It can help an investor in cutting down the investment property search to the minimum. Moreover, a heat map analysis is what real estate investors need in order to get from A-Z with any possible real estate investment.
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