Real estate investment is one of the sure ways to create passive income and set up a long-term income-generating stream. However, you need to be careful to ensure you nail it. One of the leading reasons why investors fail to build successful real estate businesses is because they don’t understand how to find and invest in an income property.
Finding the most suitable rental income property for sale near me can be a lengthy process. Beginners can find it too daunting to do it by themselves. That’s why many choose to hire real estate agents. Realtors can bring a lot of value to your home buying process. Remember, they’re experienced in real estate transactions and can leverage their networks and connections to find you the right deal.
However, hiring a real estate agent doesn’t mean you should take a back seat and let them do everything for you. Keep in mind that getting the right property for sale with guaranteed rental income is determined by the property search you do. Property search involves digging through and analyzing the real estate market to find the right property listings for you.
The internet presents so many options for investors looking to find income property for sale near me. So many that a lot of beginners don’t know where to start. Fortunately, the Mashvisor platform simplifies everything for you. You don’t have to lose your sleep over this process.
Here is a step by step guide on how to find income property for sale near me:
Stage One: Real Estate Market Analysis
Location is one of the vital factors to consider when buying an investment property. Firstly, the location determines how much you’ll pay for the property. Secondly, it also determines a property’s profitability. You don’t want to buy a property that will make losses and you end up losing your business altogether. As such, you ought to conduct a comprehensive market analysis to establish where to invest.
Mashvisor’s real estate Heatmap is a tool that helps investors carry out thorough market research. Before using the tool, you should first select a profitable real estate market or city. You can always do this by looking for the latest data per city on the Mashvisor blog.
Once you’ve selected a city, you can then use our Heatmap tool to check which neighborhoods within the city are best for income property investment. Luckily, the Heatmap tool isn’t complicated.
The Heatmap uses a color-coding scheme, instead of just numbers, to represent various values for different key metrics. For example, red represents areas with the lowest values while green shows an area with the highest value.
You can use the tool to get average values for:
- Listing price
- Traditional rental income
- Traditional cash on cash return
- Airbnb income
- Airbnb occupancy rate
- Airbnb cash on cash return
Choosing a neighborhood with a high-income potential, in this case, represented using green, is a sure way of succeeding in real estate investment. You can now establish the most suitable places to invest in in a matter of minutes instead of spending weeks and even months visiting neighborhoods and trying to do market research.
Stage Two: Find Income Property for Sale Near Me
Real estate market analysis is just the first step towards finding an investment property with great potential. Once you’ve used the Heatmap to establish which neighborhood you want to invest in, it’s now time to check out individual properties.
If you’re doing this by yourself or traditionally by driving through neighborhoods looking for “For Sale by Owner” signs, this can be a complicated process. If you’re tech-savvy and decide to look for investment property online, that’s still not enough. With the wide range of properties, you’ll find online, you’re sure not all of them are going to be suitable for you or help you reach your investment goals. So, what’s the best solution?
Mashvisor’s Property Finder helps you come up with a list of potential investment properties, then filter them based on top-down metrics. Such metrics may include your budget, number of bathrooms or bedrooms, and the square footage. It all depends on your personal preference.
The best thing about this tool is that it uses the latest machine learning algorithms to give you the most suitable investment properties. This means that the search results will match your criteria and personal preference.
These are some of the filters you can use to find a property with a high return on investment in any US real estate market:
- Rental strategy (traditional or Airbnb)
- Property type (single-family home, condo, or multifamily income property for sale)
- Number of bedrooms
- Number of bathrooms
Once you’ve entered these filters, you’ll get results ranked from properties that match best. This list is presented by order of decreasing cash on cash return for your preferred rental strategy. In simpler terms, the most profitable income property investment opportunities are presented at the top of the property search results.
With the rental Property Finder tool, you can pull a list of a few properties that you may want to analyze further in person, or evaluate many options at once. The tool places the same data that realtors have access to into your hands.
Stage Three: Carry Out an Investment Property Analysis
Conducting rental property analysis is important whether you’ve pulled a list of potential properties you want to compare or you’ve already selected one you want to scrutinize further. Further in-depth research is needed for you to find the best income-generating properties among your options.
Property analysis is carried out by looking at the profitability potential for each property for sale and comparing that to other comparable properties within the same neighborhood. This looks like a tedious task to do by yourself. This is why you need the rental property calculator.
To carry out investment property analysis using the property calculator, you simply need to key in basic data, such as down payment, method of financing, and any other property expenses other than the estimates given.
The calculator will then generate the following information:
- Cap rate
- Cash flow
- Cash on cash return
- Occupancy rate
If the rental or residential income property for sale near me you’re analyzing is not listed on our platform, you don’t have to worry. Simply enter the property’s address and analyze it like any other property.
Another benefit of this tool is that it’s instrumental in helping you determine which would be the best rental strategy to follow. Using the data provided, you can decide whether to follow a traditional long-term rental strategy or use it as an Airbnb. This strategy is determined by a number of factors like location, property type, and property size.
If you ever wondered where we get all this information, you can rest assured that it comes from credible sources. The listings come from MLS for MLS listings and Auction.com for foreclosures. The traditional rental data comes from Zillow and MLS. Airbnb data for vacation income property for sale comes straight from Airbnb.
If you want to find profitable income-producing property for sale in 2022, there’s no better way to do so than through Mashvisor’s rental property calculator.
Stage Four: Find Off-Market Income Property For Sale Near Me
Another way to invest in profitable income property in 2022 is by looking for off-market properties for sale. Many investors fail to realize that some of the best investment opportunities don’t end up on listing platforms. As such, smart investors have found ways to know of such properties before anyone else knows about them.
When you consider off-market income property for sale near me, you might think that finding them means going out of your way to drive through different neighborhoods, knock on many doors and talk to potential sellers. However, Mashvisor Property Marketplace helps you find off-market deals at the comfort of your home.
The platform allows you to find various off-market listings in the US real estate markets. They include deals such as:
- Short sales
- Auctioned homes
- Bank/ REO homes
Like other Mashvisor tools, you can use filters on the Property Marketplace to find properties that match your criteria. The filters include:
- Property type
- Rental strategy
- Number of bedrooms
- Number of bathrooms
- Cash on cash return
- Cap rate
In addition, you can analyze the off-market properties further using the investment property calculator.
This article wouldn’t be complete without mentioning that our tools use predictive analytics. Predictive analytics utilizes big data from the past to come up with predictions for the future. As an investor, you can obtain vital information that will guide you to make investment decisions that will be relevant in the future.
Your goal when searching for income property for sale near me to invest in 2022 is to find a property with the potential for positive cash flow. With the 4 investment tools we’ve gone over, you’ll be on your way to building a profitable real estate investment.