If you are just getting started in real estate investing for the first time, it’s important to understand that finding a profitable income property for sale takes a lot of research. This is traditionally a long process that requires a great deal of time and effort in collecting and analyzing real estate data. Fortunately, thanks to technological advancements in the housing industry, there are various real estate investment software tools that help investors locate lucrative deals. However, it’s easy to get overwhelmed with the sheer number of real estate property investment tools in the market. While all of them promising to help you find a profitable income property easily, many of them have little to offer.
If you are looking to invest in the US housing market in 2021, Mashvisor’s real estate investment software is what you need to find a profitable income property easily and confidently. Everything you need is in one place. Read on to learn why Mashvisor is the ultimate analysis software for real estate investors.
Mashvisor Real Estate Investment Software
Savvy real estate investors follow some key basic steps to find profitable rental properties for sale. When shopping around for a real estate software platform, you need to assess how it makes all these steps easier for you.
Related: The 6 Real Estate Research Steps Investors Should Follow
Here is how you can use Mashvisor in your real estate research steps to find a profitable income property for sale:
1. Market Analysis
The first step to finding a profitable investment property for sale is to research the rental market. This is because location will usually have the biggest impact on your return on investment. Traditionally, you would have to monitor the real estate market trends of different cities to determine which market is the best for investment. This could take months of research.
But Mashvisor makes your market analysis easier and faster. It does this by providing investors with city-level data and insight. On Mashvisor’s real estate blog, investors can find important data and analytics on top US cities for investing in both traditional and Airbnb rental properties. This data includes property price, rental income, cash on cash return, Airbnb occupancy rate, cap rate, and much, much more.
Most beginner investors are afraid of investing in properties located in places they don’t live in because they have little information about those markets. In most cases, they would ask themselves, “How can I find a profitable income property for sale near me?” Mashvisor helps you get past location barriers by providing real estate data and analytics for key markets in the US. The best places to invest in real estate in 2021 may not necessarily be near you.
2. Neighborhood Analysis
After selecting a potentially lucrative housing market, you need to find a particular neighborhood in the city to target your property search. The sheer number of rental houses in a city makes it difficult to locate which income property for sale to buy. And since the neighborhoods within a city usually perform differently, it would be wise to focus your search on the best-performing neighborhood.
Researching current real estate trends and predicting future trends can be a complex task for beginners. Mashvisor makes it easier for you to find the best neighborhood in your city of choice with predictive analytics. With the real estate heatmap, you can conduct a comprehensive neighborhood analysis in a matter of minutes.
This tool uses different color codes to rank neighborhoods in your city of choice based on the filters you set. In this way, you can easily identify the highest-ranking neighborhoods based on the metric you’ve specified. They are marked in green.
Mashvisor’s real estate heatmap allows you to use the following filters:
- Median listing price
- Traditional rental income
- Airbnb rental income
- Traditional cash on cash return
- Airbnb cash on cash return
- Airbnb occupancy rate
Related: Finding Income Properties Using a Heatmap
3. Search for Income Property for Sale
Locating the best neighborhood in your city of choice is only half of the process of finding a profitable investment property for sale. You should also know how to find income property for sale in the neighborhood. There are probably hundreds of available rental properties in the neighborhood, all with different features and prices. Therefore, you need to find homes for sale that closely match your budget and other preferred criteria. It’s after having this list that you can do an in-depth analysis to determine the most profitable one.
Mashvisor is one of the leading real estate search engines in the market with a database of single family homes for sale, townhouses, condos, apartments, and even small multi family homes in the US housing market. These include both MLS listings and house for sale by owner. Mashvisor gets its real estate data from several reliable sources such as the MLS, Airbnb, and Redfin before applying its machine-learning algorithms.
Mashvisor’s property finder has a number of interactive filters that allow investors to find income properties for sale that they would prefer to invest in. These include:
- Miles from a city
- Property type
- Rental strategy
- Number of bedrooms
- Number of bathrooms
You will get a list of residential income properties that match your criteria, with the highest return on investment on top. You can then conduct a comprehensive analysis of these properties to determine the most profitable one.
Related: How to Find Investment Properties Using a Property Finder Tool
4. Investment Property Analysis
With a list of investment properties for sale that match your criteria, the next step is to calculate key real estate metrics that will show you which one is the most profitable income property for sale among them.
When it comes to investment property analysis, one of the biggest problem real estate investors usually face is finding reliable property data. Moreover, doing real estate calculations manually or using an analysis spreadsheet can be time-consuming to say the least, especially when analyzing multiple properties.
With Mashvisor’s investment property calculator, you can get a comprehensive investment property analysis in a matter of minutes. The tool uses machine-learning algorithms and predictive analytics to accurately project key real estate metrics. With these numbers, you can determine which income property for sale makes the most financial sense to purchase. Here is some of the property data analytics Mashvisor provides you with:
- Rental property expenses (one-time start-up costs and recurring monthly expenses)
- Rental income
- Cash flow
- Occupancy rate
- Cash on cash return
- Cap rate
One of the things that make Mashvisor the best investment property analysis calculator is that, for each of these numbers, it provides both Airbnb data and traditional rental data, based on the actual performance of rental comps in the area. This allows investors to easily determine the optimal rental strategy.
The Mashvisor investment property calculator also comes with other features that help investors make smarter investment decisions. Here are some of the key special features:
When buying real estate, you want to shop around for the best investment loan since financing costs will have a big impact on your return on investment. Fortunately, Mashvisor’s rental property calculator comes with an inbuilt mortgage calculator. This tool allows you to determine the best financing method based on the mortgage details you specify. A change in the mortgage details will be reflected on the cash flow and cash on cash return calculations.
Real Estate Comps
Mashvisor’s calculator automatically generates real estate comps for each residential income property for sale on the platform. These are similar properties in the same area that have sold recently. They are important for determining the fair market value of the rental property you are analyzing. Fair market value will show you whether the property is overpriced, below market value, or fairly priced and help you optimize your rate of return.
Related: How to Do a Real Estate Market Analysis in 2021
The Bottom Line: Finding a Profitable Income Property for Sale
Finding a profitable investment property for sale is easy if you are using the right real estate investment software. Mashvisor allows you to find the best real estate investments in the US housing market by providing accurate real estate data and analytics. It eliminates the need for conducting tedious market analysis, property search, and property analysis using traditional methods. With Mashvisor, you can find a profitable income property for sale in just a matter of minutes.
To get access to our real estate investment tools, click here to sign up for Mashvisor today and enjoy 15% off.