Due to its ease of use, a real estate app can receive hundreds or more weekly visits by investors. And you should make sure to use the best one.
Table of Contents
- 6 Challenges of Investing in Real Estate in 2023
- What Exactly Is Mashvisor?
- How Does Mashvisor Acquire Data?
- How Mashvisor Helps Real Estate Investors Succeed
- What Issues Will Mashvisor Resolve?
- What Is the Best Real Estate App? The Final Judgement
In 2023, technology will continue to be incorporated into practically every company and sector, including real estate.
It is excellent news for real estate investors since it will help them become more efficient. Discovering income properties, acquiring property data, researching the housing market, and various other operations that investors generally must perform will no longer be done by hand.
We’ve got you covered if you’re searching for a single real estate app to meet all your needs. Mashvisor is the most up-to-date real estate investing app that offers predictive analytics, property data, and a variety of tools. Continue reading to discover what the platform can offer real estate investors.
6 Challenges of Investing in Real Estate in 2023
Are you excited to get started in real estate investment in 2023? Then, it is ideal to weigh both the advantages and disadvantages—since you can evaluate if it will be a good idea for investing in real estate.
The global pandemic put a temporary brake on the housing market. However, we can now observe how the real estate market is improving. We will point out both three reasons why it is smart to invest in real estate in 2023, as well as three challenges investors and agents may face.
First, let’s start with all the best reasons why investing in real estate in 2023 is advisable.
3 Reasons to Invest in Real Estate in 2023
As the market settles into its new “normal,” real estate professionals, renters, and homebuyers are preparing to forecast what will happen in the coming year. And we are here to summarize everything you need to know about the 2023 real estate forecast.
1. More People Are Planning to Relocate
Property demand is predicted to grow in 2023. That’s because most individuals are getting ready to relocate.
By far, the suburban areas continue to draw a vast number of purchasers in 2022. And the “migration” of people from cities was a pre-existing tendency amplified by the epidemic. During COVID-19, 82% of metropolitan areas saw more people move out than in, while 91% of the suburban regions saw more people move in.
Demographics play a significant role in suburbanization. The millennial generation is approaching the age of house ownership. As buyer millennials grow, they seek regions with a better quality of life, outstanding school districts, and cheaper living costs—the suburbs are particularly appealing.
Yet again, the work-from-home setup allows individuals to avoid relocating to a major metropolitan area to pursue their careers.
2. House Inventories Will Rise Slightly
2021 was confirmed to be a seller’s market. With fewer properties on the market and individuals flooding in from all around, the property market was highly competitive.
However, inventories have been rising for the past few months, which hasn’t happened in a long time. Movers and buyers may anticipate a little more buyer-friendly market with more options. As we approach 2023, increased inventory levels indicate that we are approaching a more “normal market.”
3. The Economy Will Drive Temporary Movements
According to the latest data, temporary filers saw the most significant rise in change-of-address applications. The USPS recorded a 26.73% increase in submissions from 2019 to 2020. It was partly impacted by the pandemic and the rapidly increasing number of new cases in urban areas, such as New York City and San Francisco.
Nevertheless, the effects of the 2019 migration patterns are now sinking in. During the pandemic, rents in New York, as well as other large cities, fell. While such a trend is beginning to reverse, experts predict that rents in pricey metropolitan areas may never reset to pre-pandemic levels.
Smaller and less costly communities, on the other hand, lure citizens through incentive programs. Cities such as Tulsa began incentive programs that paid employees thousands of dollars to relocate to the city. Smaller cities and towns in famous tourist areas like Florida and Texas soon followed.
Top 3 Challenges Investors Could Face in 2023
Predicting whether the housing market will collapse in 2023 includes several aspects, prompting us to delve deep into the subject. Now, we will see the “not-so-good” forecast topics that can impact the real estate market.
Logically, if inflation goes up, consumer spending will fall, resulting in an economic slowdown, economic instability, and even a recession. It will very likely raise the probability of a crash in 2023.
2. Mortgage Interest Rates Increase
The possible pool of buyers shrinks with each percentage point increase in mortgage rates. It generates a domino effect on declining prices as sellers on the outside hurry to join in to catch the falling prices.
3. Rising Home Prices
Mortgage rates were at an all-time low in 2021. Some people then used stimulus funds to save for down payments on homes, and we know that inventory was at a historic low.
The 2023 real estate market may catch up as demand approaches supply. Supply may also grow, with potential sellers getting on board to capture the high waves before the storm recedes.
Leaving aside the situation, we should focus more on the best real estate app of 2023—Mashvisor—and if it’s a good idea for investors, agents, buyers, and others.
What Exactly Is Mashvisor?
Mashvisor, founded in 2014, is a real estate investing app that assists investors in locating the ideal properties, quickly studying the market, evaluating their investment and prospective earnings, and so on.
Investors, agents, and homebuyers may accomplish the above without conducting any research. Mashvisor performs it for them by providing factual, useful data to assist them in locating the best deals. It’s the ideal time-saving tool for investors who want to ensure they’re buying the right property each time.
Mashvisor’s real estate app assists property investors in two ways during the purchasing process. For starters, it helps them in locating potential investment properties. Furthermore, it assists them in analyzing such properties to see how they will perform as a typical long-term or short-term vacation rental.
Mashvisor, as previously described, is a website meant to make your job as a real estate investor simpler and more effective. It offers analytics that demonstrate the probable performance of investment properties in any city and area in the US housing market.
The platform’s analytics are predictive, which means they can forecast future patterns and results based on past and comparative data.
How Does Mashvisor Acquire Data?
The Mashvisor app gets data through a variety of reputable channels. It exports the data from numerous channels and checks their accuracy by comparing them with different sources. Some of the sources are Realtor.com, Zillow, MLS, and Airbnb, to name a few.
Every source serves a purpose and provides a specific type of information. Websites such as Realtor.com, Zillow, and MLS make property information publicly available. It covers the property’s physical description, previous owner information, price, and size.
On the other hand, Mashvisor forecasts the STR rental revenue of homes using data from the short-term rental market provided by Airbnb.
For example, the Mashvisor app examines the history of properties going back three years. The platform receives traditional investment data from reputable sources and Airbnb statistics from the Airbnb website. After gathering this data, it utilizes its algorithms for computations and forecasts.
What Makes Mashvisor’s Real Estate App Accurate?
To answer the question, we will give you a simple example. Mashvisor real estate app studies the medians, whereas other real estate apps, analyze the means. Since, unlike the mean, the median eliminates extremes that might distort and misdirect the analysis, Mashvisor’s technique is far more accurate, stable, and trustworthy.
Data accuracy is a highly desired app characteristic that may make or break any investment. Luckily, the Mashvisor app uses one of the country’s most comprehensive and up-to-date databases. Its database is continuously updated based on facts and data acquired from respected real estate market data sources.
Mashvisor’s Airbnb data is also far more reliable because it only includes verified rentals with three or more Airbnb reviews. That ensures that the data we use are from legitimate Airbnb hosts who have been in the business for a long time rather than those who are still trying out the platform and might abandon the venture.
The information on the Mashvisor app is more precise and dependable than the data on similar platforms. It is because the Mashvisor app takes asset data directly from the MLS, whereas other tools get it from public papers, which may contain mistakes. The simplest method to achieve accuracy is to focus your investment property analysis on comparable properties.
What About Updating the Data?
Our real estate app gathers all accessible data, evaluates it, and delivers clients with valuable reports to help them reduce time on research. The Mashvisor app refreshes its data at least once a week but updates the MLS listings daily. Our company also evaluates the data search results and its algorithms regularly to ensure that clients only receive relevant, correct info.
So to answer the popular what is the most up-to-date real estate app question, we can certainly say that Mashvisor is one of them.
How Mashvisor Helps Real Estate Investors Succeed
Our real estate investment app makes it easier for users to evaluate the performance and profitability of rental homes.
The app’s functions include determining if renting out a home on Airbnb or as a traditional rental is more beneficial. Moreover, it helps calculate the costs involved with a unit and compares the property they chose with other properties discovered on Airbnb and traditional listings.
Furthermore, Mashvisor enables real estate investors to easily explore investments around the country and become well-informed on numerous markets by utilizing a variety of the best real estate analysis tools.
And, of course, the app collects data from several sources, arranges it, and makes it simple to crunch the numbers on multiple characteristics rapidly (as we mentioned previously). It not only saves you time but also provides you the confidence to get started in real estate investment and reach your financial objectives.
In addition, investors and agents may also use the data analytics platform to seek off-market assets, receive insights on their investment possibilities, and contact the owners of the properties directly. Finally, Mashvisor enables users to automatically and correctly verify potential investment property purchasers.
Mashvisor’s first real estate investment product is the Property Finder. This tool is perfect if you want to rapidly identify the ideal rental home in your desired city without doing an extensive analysis.
Professional investors understand the value of identifying opportunities before their competition. Your investment property search must be swift yet effective. As a result, traditional methods of identifying real estate investment homes will no longer work in 2023 since they take forever to buy a place that may or may not be worth the investment.
Instead, you should try Mashvisor’s Property Finder tool. You can use the tool to locate homes for sale as soon as they enter the market. As a result, you’ll get the strategic advantage you need in today’s real estate market.
Apply the desired criteria for locating an investment property before using our real estate investing software. The program will then display a list of traditional and Airbnb homes for sale that suit your criteria and return on investment goals.
A few of the filters are necessary, while others are optional. They will help you in narrowing down your property search as much as possible to acquire the finest results. Below are the filters:
- Location/City: You can pick and search for homes in up to 10 cities simultaneously.
- Miles: The distance from the city you would like your search to cover
- Rental Strategy: Traditional or Airbnb
- Type of Property: Single-family, multi-family, or other
- Number of Bathrooms and Bedrooms
Property Finder makes use of machine-learning technologies and predictive real estate analytics. It makes identifying real estate investment opportunities that fit your requirements easier. Our tool is what you need whether you’re thinking about how to locate the best place to buy rental property.
Mashvisor’s Heatmap tool is a notable feature. At first sight, it appears as a typical map that indicates how many investment homes are available for purchase in your chosen city and in which region they are based.
The app feature differs from other programs in that it uses visual clues and colors to assist investors in identifying one investment location from another.
The Real Estate Heatmap removes the need to review other resources and tables while researching real estate investments. It is an advanced tool that uses property data and predictive analytics to identify the best-performing investment properties in a neighborhood.
Users can change search results using Mashvisor’s heatmap tool based on their preferences. Moreover, users control the real estate market study by selecting their key investing criteria, whether it’s the listing price, cap rate, cash on cash return, or occupancy rate.
The map will light up in shades ranging from either light to dark blue or red to green. Dark blue or green indicates that a particular area ranks highly for the selected criteria, and light blue or red shows that it ranks poorly.
It is known as the neighborhood analysis real estate tool at Mashvisor. The feature enables real estate investors to observe how an area performs compared to others in their chosen city for real estate investing. As a result, the heatmap makes it easier and faster to find an area with rental homes for sale that offer decent returns.
Click here to search for and research the best investment properties in your desired city and neighborhood.
Additional Heatmap Features
What if you’re still not prepared to look at a particular rental property for sale? Perhaps, you’d want to take a closer look at a community first to determine whether investing in real estate there makes sense. In such a scenario, navigate to the Neighborhood Analysis page.
Click on a neighborhood of interest on the map, then select “View More Data.” It will lead you to the Neighborhood Analysis page, on which you’ll find the following information:
- Optimal Rental Strategy
- Walk Score
- Number of Properties
- Airbnb Occupancy Rate
- Traditional and Airbnb Cash on Cash Return
- Traditional and Airbnb Rental Income
- Median Property Price
- Average Price/Square Foot
Rental Property Calculator
After locating income homes for sale, real estate investors should check the figures for each transaction. It is to ensure that they purchase the most lucrative one in 2023. A valuable rental property generates a high rental yield, good cash on cash return, and a high return on investment.
As a newbie investor, you may not understand how to compute the different property metrics or conduct a rental property study. The method takes time because you’ll need to identify rental comps and calculate the figures for each one. As a result, you’ll need an investment app with a rental property calculator, such as Mashvisor.
After locating a property (through the Property Finder or the Property Marketplace), tap on the listing to activate our rental property calculator. This calculator app uses rental comps data from the local property market to provide a quick property investment analysis.
Our rental property calculator calculates the following for each income property:
- Price of the Property
- One-time Expenses
- Ongoing Monthly Costs
- Rental Income
- Occupancy Rate
- Cash Flow
- Cash on Cash Return
- Cap Rate
Furthermore, Mashvisor’s investment property research is trustworthy, based on actual estate data from MLS, Zillow, and Airbnb. It is also based on the performance of real rental comps in the neighborhood. Buyers can change the figures as suitable, and the calculator will quickly update the predicted ROI.
Looking for a free tool to estimate the Airbnb rental income potential of a specific property? Try our Airbnb calculator.
At the top of the page, you’ll get a comprehensive summary of the investment property. It contains the same information as previously, as well as the following:
- Purchase Analysis
- Valuation Analysis
Now, we will go over each topic separately and cover them in-depth.
1. Purchase Analysis
The Purchase Analysis tab contains some of the most valuable information for real estate investors and agents. It contains all the computations required to examine properties and decide if they would be successful investment properties.
This is where you select whether you want to finance the property or pay cash. After deciding on your chosen financing type, you must determine the purchase price. The Mashvisor app, of course, already includes the listed price as well as Redfin’s anticipated selling price.
Therefore, simply choose whatever amount you’re prepared to provide or use the “Custom Price” option and enter whatever amount you want to get returns for.
Now, if you’ve decided to fund your real estate investment with a mortgage, you’ll need to give further loan information. Start with entering your down payment, loan size, loan option, and mortgage interest rate to personalize your mortgage.
Here is the best part, as you’ll see how intuitive Mashvisor’s Property Calculator is. Any changes made to the mortgage calculator will cause the estimated return on investment to be recalculated. It allows you to experiment with the figures to see which mortgage type, loan size, and down payment will produce the highest ROI.
The rental strategy component of our real estate research tool will show you how the property will likely perform as a traditional rental vs as an Airbnb rental. Here, you can just compare the predicted returns of each rental plan to see which one is best for the property (produces the best returns) when it comes to:
- Cap Rate
- Occupancy Rate
- Cash Flow
- Cash on Cash Return
- Comparable Rental Income
- Monthly Expenses
Of course, owning an investment property involves a lot of costs that reduce its revenue. Therefore, in the next part of our property calculator app, all expenses will be divided into one-time initial costs and ongoing costs for real estate investors and agents.
The following are the primary one-time startup expenditures for any rental investment:
- Furniture and Appliances Costs
- Closing Costs
- Inspections Costs
- Repairs or Renovation Costs
The following are the recurrent costs of running a rental property:
- HOA Dues
- Rental Income Tax
- Property Maintenance
- Property Tax
- Property Management
The costs you see are pre-calculated and based on local rates and rental comps for regular and Airbnb rentals in the region where the property can be found. Of course, investors and agents should conduct their own study and adjust the expenditures to ensure a more realistic rate of return figures.
2. Valuation Analysis
You’ll find a list of rental comps for both the traditional and Airbnb strategies on the Valuation Analysis page. The Mashvisor app uses comparisons to help investors and agents determine whether an investment property or a rental strategy is a suitable fit for their own goals.
Therefore, you’ll see how similar the comps are to the home you’re looking at, as well as their addresses, distance, rental income, occupancy rate, and other factors.
Lastly, the Insights tab provides you with the following:
- Rental Opportunity Insights
- Airbnb Occupancy Insights
- Investment Valuation Score
- Overall Evaluation of the Neighborhood
Mashvisor launched the Property Marketplace to help investors discover thousands of off-market houses in their preferred housing market. Foreclosed properties, bank-owned residences, short sales, and even auctioned residences fall under this category. You’ll also enjoy access to the same filters as the Property Finder to help you narrow down your quest.
One more useful feature of the tool is that it enables the buyers to calculate the possible income they can make by using Mashvisor’s rental property calculator. In other words, you’ll be able to identify low-cost properties with a strong potential for positive cash flow and a substantial ROI.
Moreover, that way, you’ll be able to uncover not just below-market value possibilities but also cash-flowing, off-market properties utilizing comparative data.
We can go on about all of the Mashvisor app and its features. Click here to learn more about our product, what it offers, the plans it includes, and whether or not it suits your needs.
What Issues Will Mashvisor Resolve?
There are many problems that you can solve by using our app. Some of them are the following:
Prolonged Research Procedure
Aspiring real estate investors often spend three months researching markets and individual rental properties. As a result, they complete fewer deals, unlike the more skilled real estate investors. The Mashvisor app allows you to conduct your research in about 10-15 minutes.
Slow Investment Property Evaluation
Real estate investors can’t constantly evaluate and analyze off-market rental properties quickly enough before someone buys them. By comparing an off-market rental property’s behavior to similar properties in the same area, the Mashvisor app allows investors to analyze an off-market rental property’s overall performance swiftly.
No Way of Sorting Leads
Agents may effectively create leads for rental property purchasers, but they cannot determine if these leads are qualified and worthwhile. They might spend weeks talking with prospective property buyers who do not purchase the property.
With Mashvisor’s lead qualification app, agents can now determine whether a lead is willing to buy a home in the following weeks or months.
What Is the Best Real Estate App? The Final Judgement
There are numerous real estate apps online, but only a few may be considered the best. As stated above, the Mashvisor app and its tools will help any real estate investor make educated, quick, and successful investment choices.
The best part about the software is that you don’t need to be a technical expert to use it successfully. Mashvisor’s real estate investing app can help you locate the finest places to invest, discover lucrative rental properties in the US, or evaluate a real estate deal you found during your house search.
As we evaluated above, Mashvisor is an all-in-one analytics real estate app for investors and agents who want to identify the finest homes quickly. Our company provides substantial research and a wealth of valuable, relevant data.
Furthermore, our tools make exploring other markets and assessing investment possibilities simple and painless. It means that you will no longer need spreadsheets and will not lose lots of time.
Suppose you’re actively seeking new rentals in your area, trying to save time on your property research, or looking for a faster approach to uncover new markets and homes that meet your requirements. In that case, Mashvisor can be of great help.
Simply put, these aspects alone make our app worthwhile to explore. Furthermore, it is worth noting that the company provides excellent value, as our subscription plans are fairly priced.
To get access to our real estate investment tools, sign up for a 7-day free trial of Mashvisor today, followed by 15% off for life.