There are a lot of factors to consider when it comes to choosing between rental income properties for sale. If you don’t know what to look for, or what to prioritize, finding the best property could be overwhelming. But it doesn’t need to be. You can quickly analyze rental properties by using our tools. Mashvisor’s rental property calculator makes finding investment properties for sale and analyzing them easier than ever. Our tool does all the necessary analysis for you.
To help you understand how easy it is to analyze rental income properties for sale with Mashvisor, we’ll break down how the calculator works.
Our Rental Property Analysis
Rental property analysis is crucial for any real estate investor looking to succeed in this industry. Mashvisor knows how important this is, which is why it’s the core function of our tool- the rental property calculator. This is a digital real estate investment tool that investors can use when trying to analyze rental income properties for sale.
How does our analysis work and what can it do for you? Based on comparative data and analytics, real estate investors can:
- Choose the best location for their property
- Determine the optimal rental strategy
- Learn critical info on the real estate market they’re searching in
- Calculate the key return on investment metrics for any property
- Compare property performances in an area
- Filter income property for sale based on the property type
You provide us with the basic criteria on a prospective property you’re interested in, and we’ll give you the critical calculations for any investment analysis. If you want to choose between rental income properties for sale, our analysis will let you know what the best property for you is based on your criteria. But in general, these are the main factors to consider when buying income property:
1) Location Data
This is one of the most important parts of any income property analysis. Our tools give you the option of searching for properties based on the neighborhood they’re in. So if you’re wondering “What are the best income properties for sale near me?” we have the answer for you.
You can’t answer that question without first knowing what the average performance of income generating assets is in that location. That is one of the ways our analysis makes it easy for you to choose the best listing out of all the rental income properties for sale in your area- by giving you these neighborhood analytics:
- Number of listings (for-sale, traditional, and Airbnb)
- Median Property Price
- Average Cap Rate and Average Cash on Cash Return
- Average Occupancy Rate
- Optimal Rental Strategy
This is a special feature that you won’t find anywhere else. Start by taking a look at these numbers for the housing market you’re interested in. This way, you’ll ensure that you’re in a good location for real estate investing first. Then, based on your criteria (property type, number of bedrooms and bathrooms, budget, rental strategy), you can start searching for rental income properties for sale.
Related: How to Choose the Right Location for Rental Properties
2) Traditional and Airbnb Cash Flow Data
Positive cash flow is key for a successful investment in rental property. Cash flow is the rental income minus rental expenses. Our real estate investment analysis offers you comparable rental income and expenses for every qualified property listing in the area you’re searching in. Because the level of income a property generates plays such a big role in how profitable it is, it’s important to focus on this when choosing a property. Our rental property calculator (which is also known as the income property calculator) provides a full cash flow analysis, showing you the projected performance of an income property over a year.
Related: Why Is Cash Flow Analysis for Investment in Real Estate Crucial?
We mentioned both traditional and Airbnb as these are the two rental strategies you’ll have to choose between when buying rental property. It’s important you pay attention to the different levels of income each strategy is projected to generate. The rental strategy you choose could mean the difference between owning a positive cash flow property or owning a negative cash flow property. Luckily for you, our analysis makes it clear right away which strategy is best.
3) Traditional and Airbnb Cap Rate Data
This is a key return on investment metric that should always be included in the investment analysis of an income property. It’s found by dividing the net operating income (NOI) by the cost of the property. Rental income properties for sale will have varying cap rates based on their income generation and market value. This also means that the cap rate for the same investment property can differ when analyzing it based on rental strategy.
Our rental property calculator provides both cap rates for each property. So you can quickly and easily choose between the rental income properties for sale which have your desired cap rate for your desired strategy.
Related: Is a Higher Cap Rate Better for Investing in Rental Properties?
4) Traditional and Airbnb Cash on Cash Return
Another key return on investment metric needed for analyzing a rental property for sale is the cash on cash return. But what makes it different from the cap rate? Cash on cash return includes the financing method in its rate of return analysis. So just like cap rate, it starts by calculating the NOI. But unlike cap rate, NOI isn’t divided by the full cost of the property. Rather, it’s divided only by the amount of cash you invested. When buying an investment property, it’s very rare that you’ll do so without taking out a loan. Because cash on cash return only deals with the cash you invested (your down payment, closing costs, renovation costs, etc.), you’ll get a more realistic projection of the return to expect.
Related: Cash on Cash Return Calculation in Real Estate: What to Include
Just like cap rate, you’ll find this data readily available for every investment property on Mashvisor. Typically, these metrics can take hours or even weeks to find. So having easy access to data like this with the click of a button will really cut down on the time it takes you to analyze rental income properties for sale.
Start Analyzing Rental Income Properties for Sale Now
Your search for rental income properties for sale doesn’t need to be a process that takes months. Analyzing them to find the best investment property doesn’t need to require complex calculations. The best way to ensure you’re getting a great real estate deal is to use a rental property calculator. You’ll find all the real estate property data you need for rental property analysis with Mashvisor.
Want to find and analyze the best investment property for sale in your real estate market? Learn about your options for signing up for our services by clicking here.