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How to Do a Neighborhood Analysis in Real Estate


“Location, location, location….” We can’t get enough of this phrase. We hear it on and on and yet for some reason we forget how important finding the right location for your real estate investment really is. Choosing the right place to invest takes time and a great amount of research and analysis. Real estate investors need to carefully analyze the area starting with choosing the right city and finding the right neighborhood. The process is anything but easy.

Learning to conduct a neighborhood analysis in real estate is the first step in making successful real estate investment decisions. Mashvisor provides real estate investors with a neighborhood analysis nationwide. With Mashvisor’s neighborhood page investors can easily find investment properties within a selected neighborhood and analysis the property in detail. Let’s take a closer look at how Mashvisor’s neighborhood page works.

Related: How To Perform A Real Estate Market Analysis

First things first…choose the city you want to analyze

Type in the city that you are interested in inside the search bar and click start analyzing. A purchase analysis will appear showing you in details the major features concerning that area. So for example if you are thinking about investing in New York City but can’t decide on whether it’s the right place to invest in or not, Mashvisor’s purchase analysis will answer all your questions. It will provide for you a list of all the Airbnb properties found in that area with all its predicted data. This is very beneficial for investors since it allows them to get an overview of the property before actually investing in it.

The purchase analysis can provide for you the property’s cash on cash return, cap rate, occupancy rate, monthly expenses and cash flow for both traditional or Airbnb properties. You can also estimate your financing for that property either through cash or mortgage. The cool thing about our mortgage tool is that you can change your numbers as you like. For example, if you increase your down payment, all the calculated analysis will change according to your alteration. You can also change you loan type. Play around with your numbers until you find the best scenario that suits you and your financial situation the most.

Related: How to Effectively Analyze Investment Properties for Sale

From city to neighborhood…

After examining the city that you picked, you can dive into the neighborhood analysis in real estate. The neighborhood that you choose determines the future of your real estate investment and whether it will be a successful investment or a complete fail. So to make this more abstract, let’s take an example. Say you want to invest in Wicker Park, Chicago. This area lures residents from all over the country. Of course that’s not enough for investors to define such a neighborhood as a perfect investment area. Investors need to have an in-depth analysis of the neighborhood before they can make any decisions. Mashvisor’s neighborhood page provides just that. The summary bar shown at the top of the page gives investors a view of the property’s price, cash on cash return, rental income and number of properties (both traditional and Airbnb) in that particular neighborhood. The Airbnb occupancy rate and the suggested optimal strategy are also provided in the analysis. These in depth data make neighborhood analysis in real estate so much easier and is less time consuming for investors.

A historical rental income is available so investors can see the property’s estimated rental income throughout the years. An average of rental income is presented and can be altered depending on the property type and number of bedrooms. This can also be compared to other neighborhood properties. Historical Airbnb occupancy rate are also presented. Mashvisor’s neighborhood page gives the areas comps and insights as well. So, if you were to choose an Airbnb property at Wicker Park say Wicker Park Coach House, what information will be provided for you?

  • Overview: a quick overview about the property listing and location will be given to you. Information about the space, amenities, prices, cancellations, safety features, house rules and much more will be provided so you can fully understand what type of property it is.
  • Review: reviews from previous residents will be provided and their feedback on the property.
  • The host: information regarding the host and his/her contact information
  • Location: exact details about the location of the property.

Related: How To Do Investment Property Analysis

So as you can see from this very brief overview of Mashvisor’s neighborhood page, analyzing properties has never been easier. Neighborhood analysis in real estate needs patience and the right and most valid sources in order to ensure the best results. Be sure to check out Mashvisor for the best analysis nationwide.

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Ranah Asad

Ranah is a long-term content writer at Mashvisor with a degree in strategic studies who enjoys writing about all aspects of the real estate investment business.

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