Real Estate Analysis Real Estate Analytics Software: How to Use It to Make Money by Nadia Abulatif May 30, 2019May 30, 2019 by Nadia Abulatif May 30, 2019May 30, 2019 You are here because you want to make money in real estate. And, we are here to tell you exactly how: with the power of real estate analytics software! So, let me tell you from the get-go: you can do it on your own. You can get paper and a pen and start crunching some numbers here and there. But, don’t you think it is best to save that time to engage in better activities, like looking for more profitable investment properties? Since the answer is going to be yes, that time is valuable, and you need to invest it somewhere else, let me tell you how real estate analytics software will help you find the best real estate investments for 2019 that will allow you to easily make money: Find the Best Place to Invest in Real Estate First of all, real estate analytics software helps property investors detect the best places to invest in real estate. It helps conduct what we call the real estate market analysis. This process is based on past housing market data as well as present data. It goes through the previous market trends, analyzes the current trends, and estimates future possibilities to predict where a specific market is heading in the future. This type of analysis uses what is called ‘predictive analytics‘. A successful real estate investor knows that his/her investment business depends on the real estate market analysis. It can help a real estate investor decide whether to rent out the traditional way or opt for Airbnb rental properties. Therefore, you can see that examining the real estate market is essential for making money in real estate and you want to get the location right. That’s exactly what real estate software will help you do. Find out more about Real Estate Market Research Tools to Find the Best Investment Properties. Identify Positive Cash Flow Properties for Sale Another way to use real estate analytics software to make money is to find positive cash flow properties for sale. And, this is the part where real estate data analytics comes into play. At this stage, you are getting into the investment property analysis process. Of course, finding positive cash flow real estate is only one aspect of this process, and we’ll talk about other elements in the next sections. But, here we are focusing on the most important one, which is cash flow. So, what does it mean to have a positive cash flow investment property? In essence, positive cash flow means that you’ve gotten your hands on an income generating asset. Cash flow is basically whatever’s left after deducting all bills and financial obligations from your monthly rental income. For example, property management fees, insurance fees, contractor fees, mortgage, and maintenance are all considered to be rental expenses. Sure enough, these are not the only expenses. There are always expenses that will come up at the time you are calculating. Also, the details are different from one investment property to another. And that is exactly why you need real estate analytics software to make money in real estate. It is, in fact, the only way to ensure accuracy when analyzing a rental property for cash flow before actually making the purchase. Find High Cap Rate Properties for Sale The sole reason such software for real estate investors exists is to help them find the most profitable investments. So naturally, this includes helping them find high cap rate properties for sale. The capitalization rate (or cap rate) is the annual cash flow divided by the property’s price. It is an evaluation method that examines the expected returns relative to the overall price of the property. Therefore, cash flow plays a major role in this type of evaluation. The higher the cash flow, the higher the rate of return a property produces. And, this is the part where you need real estate analytics software. You don’t want to spend a ton of time calculating cash flow only to find the property has a low cap rate. Rather, the right kind of software can show you accurate cap rates while you’re browsing investment properties so you don’t have to do an in-depth analysis of each one you come across. Before we move on, take a few minutes to read A Guide to Finding High Cap Rate Properties for Sale in 2019. What Real Estate Analytics Software Do You Need to Do All of This? Now you know what software can do for you and how it will help you make money. But what real estate analytics software has the power to do all of this? The answer lies in the following real estate tools: Heatmap Analysis Tool There is no better option than a heatmap tool to find lucrative neighborhoods in the US housing market. This real estate analytics software comes in the form of a map that pinpoints all the neighborhoods with potentially profitable properties for sale in the city of your choice. It displays essential information on each neighborhood, including the average Airbnb occupancy rate, rental income, median listing price, as well as other crucial ROI metrics. In this way, you can make sure you are investing in the right place from the get-go. Property Finder Tool How to find investment properties with a property finder tool? Easy! All you have to do is insert your own criteria, and you’ll get a list of top-performing rental properties for sale based on it. You can insert your budget range, property type, and the rental strategy of your preference. Then, you just sit back while the property finder does its job. Once you’ve got the list, you can start searching for your ideal property. Mashvisor’s Property Finder Do you have a free Mashvisor account? Use our Property Finder to find lucrative investment properties that match your criteria in a matter of minutes! Sign Up for Free Investment Property Calculator Finally, the investment property calculator is a form of real estate analytics software that you need for sure. After you’ve used the previous tools to get an overall idea about the location and rental properties, you can use this tool to calculate further details. For example, you will have to determine your finances and based on that, decide if it makes sense to invest in a particular property. You will also need to get an in-depth analysis of other measures taking into account all of the variables at hand. It will also help you estimate some possible challenges and maybe find a way to overcome them. For instance, what would the numbers look like if you invest all cash in the property? Will it be better to apply for a mortgage? The tool can help you answer this. All of these analytics tools are available at Mashvisor. To learn more about how we can help you find profitable investment properties, schedule a demo. Start Your Investment Property Search! START FREE TRIAL Cap RateCash FlowHeatmapInvestor ToolsMarket AnalysisProperty Finder 1 FacebookTwitterGoogle +PinterestLinkedin Nadia Abulatif Nadia Abulatif is an experienced Content Writer at Mashvisor. She was a trainee lawyer before switching to writing about real estate. 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