Mashvisor Tools The Best Investment Property Return Calculator for 2020 by Hamza Abdul-Samad February 6, 2020January 20, 2020 by Hamza Abdul-Samad February 6, 2020January 20, 2020 Buying an investment property is the best investment you can make in 2020. However, that does not mean real estate investors can just buy any income property for sale and expect it to start making money. This fact, then, raises questions like: How to know if an investment property is profitable? How to calculate the rate of return on an investment property? Both questions have the same 6-word answer: Use an investment property return calculator! What is an investment property return calculator? Where can you find the best calculator for finding and analyzing a residential property in 2020? Read this blog to find out! Related: 20 Common Real Estate Questions New Investors Ask What Is an Investment Property Return Calculator? Also known as a rental property calculator or real estate investment calculator, the investment property return calculator is the best tool for real estate investing. It’s the ultimate analysis tool for income property for sale. The calculator is powered by various types of real estate data. Through such data, investors can learn about the return on investment of a rental property. What Is the Best Investment Property Return Calculator for 2020? Rental property calculators have revolutionized real estate investing. No longer do investors depend on a real estate investment analysis spreadsheet. However, no two calculators are the same. So, where can you find the best rental property return on investment calculator? Right here, with Mashvisor! Why is Mashvisor’s calculator the best for 2020? We’ll tell you! We’ll also show you if you CLICK HERE! By doing so, you can start your FREE 14-day trial with our calculator. How Does Mashvisor’s Rental Property Calculator Work? Mashvisor’s rental property calculator uses the most up-to-date data and trends for its analysis. It also allows real estate investors to provide input data to generate the most accurate results. Then, the investment property return calculator computes the return on investment (ROI) metrics for the property. Mashvisor’s Input Data Input data breaks down into two types. First, real estate investors can enter in financing costs. They can also adjust and add any additional rental property expenses. These two figures are ultimately deducted from the rental property’s profit to calculate ROI. Financing Costs Calculating return on investment, specifically the cash on cash return, greatly depends on financing costs. Mashvisor’s calculator allows users to select the financing method (cash or mortgage) that they plan to use. For mortgages, real estate investors must insert the amount of the down payment, interest rate, and loan amount. Investors must also include the loan type. With financing costs ready to go, the calculator is one step closer to rental ROI calculation. Mashvisor’s Investment Property Return Calculator – Financing Property Expenses The investment property return calculator actually provides expense estimates based on real estate comps and location. Rental property expenses include one-time startup and recurring costs. Startup costs are only paid once. These include furnishing fees, closing costs, and inspection fees. Recurring costs, however, persist during rental activity. These include HOA dues, income tax, insurance, and more. You can either keep the estimates as they are or adjust them and add your own. Mashvisor’s Investment Property Return Calculator – Expenses Related: A Comprehensive List of Rental Property Expenses for Investors Mashvisor’s Output Data Once the input data is inserted, rental property ROI is calculated. The calculator measures ROI in three ways. These include cash flow, cash on cash return, and cap rate. Cash Flow Cash flow is the most essential ROI metric out there. It is defined as the difference between rental income and expenses. A positive cash flow rental property has a net positive income. A negative cash flow property, however, is an unprofitable investment. Mashvisor’s calculator provides cash flow estimates for all investment properties for sale. Cash on Cash Return Cash on cash return, or CoC return, is a valuable ROI metric in real estate. Using cash flow, it estimates return based on the amount of cash invested. For this reason, the CoC return is a great investment property rate of return metric for investors using a mortgage. Cap Rate Capitalization rate, or cap rate for short, is the third ROI metric computed by the calculator. Unlike cash on cash return, it evaluates profitability regardless of a property’s financing. Therefore, the cap rate is best used for comparison. Sign Up for Mashvisor Why Is Mashvisor’s Calculator So Unique? Mashvisor’s calculator not only provides the most accurate and comprehensive ROI analysis out there, it also provides unique real estate data. Some of the unique features of Mashvisor’s investment property return calculator include: Optimal Rental Strategy Choosing between a long-term investment property and an Airbnb investment property can be tough. However, with Mashvisor’s calculator, real estate investors can accurately determine which rental strategy is optimal. The calculator does so by providing both traditional and Airbnb data. It acts as a rental property calculator and an Airbnb calculator. Using data and trends, the calculator tells the investor which rental strategy to follow. Mashvisor’s Investment Property Return Calculator – Rental Strategy Related: The Definitive Guide to the Rental Property Investment Strategy Real Estate Comps When buying an investment property, investors need to compare it with other properties to determine its value. These are called real estate comps and you can easily find them with Mashvisor’s investment property return calculator! Mashvisor’s interactive calculator automatically lists the best real estate comps for analysis for every property on the platform. And as you would expect, this tool provides real estate comps for both traditional and Airbnb rentals. Mashvisor’s Investment Property Return Calculator – Comps Investment Payback Balance The calculator also provides a payback balance for an investment property. In this section, users can learn about the 10-year profit forecast of a property based on its current data. The payback balance is estimated for both Airbnb and traditional investment properties. Investors can, therefore, use the tool to understand how to maximize rental profitability. Mashvisor’s Investment Property Return Calculator – Investment Payback Balance Mashvisor’s investment property return calculator is a must-have tool for investing in 2020. To learn more about Mashvisor’s real estate investment tools, CLICK HERE! Start Your Investment Property Search! START FREE TRIAL Cash FlowCostsFinancingInvestment CalculatorReal Estate CompsReturn on Investment 0 FacebookTwitterGoogle +PinterestLinkedin Hamza Abdul-Samad Hamza is a long-time writer at Mashvisor. With a focus on real estate investing tips, concepts, and top investing locations, he aims to help all aspiring investors who come across his blogs to hit the bank with their investment property. Previous Post Painless Ways to Save Money in Your Real Estate Business Operations Next Post Following the Super Bowl: Where to Buy an Airbnb Investment Property Related Posts Is This the Right Rental Property for Sale for You? Mashvisor Will Help You Decide Where Can You Find Reliable Cap Rates for Single Family Homes? Mashvisor Property Marketplace: A Guide for Real Estate Investors A Cash on Cash Return Calculator Is a Must for Successful Real Estate Investors Buying Rental Property Calculator: The First Thing to Do in Real Estate Investing The 2022 Guide to Using Heatmap Analysis to Identify Areas for Rental Investment The Tool that Eliminates Fear of Investing in Real Estate Mashvisor: A Real Estate Investing Tool for All Your Investment Needs How to Find the Best Real Estate Deal Find Your First Deal with This Real Estate Deal Finder Using a Heat Map Tool to Analyze a Real Estate Market How to Find Rental Property for Sale Using AI Leave a Comment Cancel Reply Save my name, email, and website in this browser for the next time I comment.