Real Estate Analysis How Should You Use Real Estate Analytics in Your Investment Decisions? by Hamza Abdul-Samad August 8, 2017February 4, 2019 by Hamza Abdul-Samad August 8, 2017February 4, 2019 A major key for success that has always been consistent in real estate is to find the optimal investment property. For a long time, this was done by using spreadsheets. To put it simply, using spreadsheets was flat-out exhausting. It would require real estate investors to search, compute, and analyze data… manually! Related: Why an Investment Property Calculator Is Better Than Spreadsheets Luckily, technology has transformed this part of the real estate investing process. Now, with an investment property calculator, finding and analyzing investment properties can take minutes, as opposed to hours with spreadsheets. The rise of the investment property calculator has also opened the gates for anybody to become a real estate investor. How good is that! Related: Buying Rental Property Calculator: The First Thing to Do in Real Estate Investing If you’ve ever been curious about how an investment property calculator works, then you should learn about real estate analytics. It is because of real estate analytics that investment property calculators are made possible. Types of Real Estate Analytics The term might make the concept sound insanely complex, but real estate analytics really is just numbers and data that guide your real estate investment decisions. Generally, real estate analytics breaks down to two branches: Traditional Real Estate Analytics The older and probably less discussed type of analytics is traditional analytics. Without going into complicated details, traditional analytics involves looking at statistics and data to take a look back at what was wrong with an investment. Traditional analytics are definitely helpful; however, they tend not to be the main focus of investment property calculators. Still, traditional analytics are considered to some extent. Predictive Real Estate Analytics Predictive analytics, on the other hand, have changed the way real estate investing is approached. The game is still the same, but with predictive real estate analytics, the way the game is played has improved. Predictive analytics involves predicting future trends and aspects of an investment by breaking down past data. Predictive analytics isn’t limited to real estate. In fact, it’s because of predictive analytics that we can predict daily aspects of our lives, like the weather. There is no more accurate way to plan your moves than relying on predictive analytics. And when it comes to real estate investing, predictive analytics provides the fastest and most efficient way to break down real estate. How Real Estate Analytics Improves Your Investment Decisions There are many ways in which real estate analytics, and predictive analytics especially, improves your investment decisions. Generally, these ways are clumped into three main functions. Searching for the Suitable Location Location is absolutely everything in real estate investing. You could have the best looking and functioning rental property, but if it is in a bad area, don’t expect much in return as rental income. How does real estate analytics deal with location? Essentially, it takes the local rental market into account. Real estate housing markets are extremely dynamic. Thanks to predictive analytics, however, real esttae investors can keep up with the changes in an area. Mashvisor’s heatmap on its property search, for instance, updates its area data constantly. These data include, but are not limited to, traditional and Airbnb rental income, traditional and Airbnb cash on cash return, and traditional and Airbnb cap rates. Related: Location, Location, Location – Is Location Really All in Real Estate Investing? Finding the Perfect Investment Property Once you’ve settled for a certain location, you can continue to use real estate analytics to find which rental property is perfect for you. The perfect investment property for you won’t be the same property for someone else. That’s because there is so much to consider when searching for a real estate property. For example, you may have a certain budget that you are willing to spend. You may be aiming for an Airbnb rental strategy rather than a traditional one. The rental property’s type and the number of rooms may also be of importance to you. Whatever features you are looking for in a residential income property, you are bound to find a property that matches your type with Mashvisor. Once again, all the thanks go to real estate analytics. Understanding Investment Property Performance After you’ve found your soulmate property, it’s time to dissect it even further. And for the third time in a row, this is possible because of the service of real estate analytics. This expanded breakdown includes projections based on predictive analytics. The data in the breakdown include rental income, monthly expenses, cash flow, cash on cash return, cap rate, and occupancy rates. That’s quite a list, isn’t it? Most of these data require interactive analysis, something Mashvisor fully provides. In addition to the freedom to set your numbers, Mashvisor’s real estate analytics will provide you with advice regarding the data. For example, with Airbnb occupancy rates, Mashvisor uses analytics to detail what variable will lead to high occupancies rather than low ones. How Else Can Mashvisor’s Real Estate Analytics Help You? As you can see, Mashvisor’s predictive analytics makes deciding on an investment opportunity easier and clearer than ever. Here are two more examples of how Mashvisor’s analytics can guide your investment decisions: Shows You the Best Rental Strategy In addition to finding your best rental property, Mashvisor will find your best rental strategy. You might have a certain preference in terms of renting style, but one strategy may be wiser than the other considering your income property. Luckily, Mashvisor will immediately tell you which strategy, Airbnb or traditional, fits best with your rental property and investment goals. Tells You What the Competitions Like If you had the only rental property in an area, it’s safe to say tenants will be flocking to apply to your property. Obviously though, this isn’t reality. In the real world, there are other rental properties looking to make a profit, just like yours. How can you study these properties? With Mashvisor’s analytics! You can find out how much they are earning and what type of properties they are. This is vital for a lot of properties, especially Airbnb properties. These two functions only scratch the surface with Mashvisor’s interactive and analytic breakdown. To get a taste of the full thing, go ahead and start your trail with Mashvisor! Start Your Investment Property Search! START FREE TRIAL Start Your Investment Property Search! START FREE TRIAL Investment Property AnalysisLocationPredictive AnalyticsProperty SearchReal Estate Data 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 5 Ways to Make Money Fast in Real Estate Investing Next Post What Are the Most Profitable Types of Real Estate Investments? 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