Investments in rental properties are typically capital-intensive, cash-flow dependent, and have low liquidity. On the other hand, rental property investments are generally more secure, have tax advantages, and are more likely to protect against inflation than equities markets. As a result, they can become successful and valuable investments with proper financial research.
Real estate investing, if done correctly, can be rewarding, if not spectacular. It can help broaden your current investment portfolio while also providing an additional source of income. And so many of the top real estate deals don’t involve attending to every call of a tenant.
Therefore, how can you be sure that you’re buying a good investment property? The key is to use a reliable investment property calculator to do a complete examination. You can find numerous calculators today; however, Mashvisor’s real estate investment calculator is currently the best on the market.
Continue reading to determine why you should check this real estate tool before purchasing an investment property in the United States in 2022.
Mashvisor’s Investment Real Estate Calculator
The Real Estate Investment Calculator by Mashvisor is a digital tool that can assist you in locating profitable investment properties for sale in the United States. You must find the correct location, buy the best investment property, and adopt the best rental strategy to make a lucrative real estate investment. All of these can be accomplished with the help of a real estate investment calculator by Mashvisor.
It manages this by allowing you to search for and evaluate both neighborhoods and investment homes. Everything you need to do is submit some basic data based on your real estate investing criteria, and the calculator will take care of everything else.
Since it employs both traditional and predictive analytics, the Mashvisor real estate software is rapid and precise. As a result, when it comes to analyzing potential real estate deals, it will save you a considerable amount of time and work.
Moving on, let’s see in detail how Mashvisor’s real estate rental investment calculator can benefit you in 2022 with everything from the neighborhood, income properties, and investment property analysis.
Real Estate Return on Investment Calculator: Neighborhood Analysis
Location is the most significant element in real estate investments because it determines your ROI the most. To find the best-performing markets, you’ll need to undertake complete real estate market research.
When it comes to investing in real estate, it’s simple to pick a place to invest in because city data can be gathered online, such as on Mashvisor’s real estate blog. That is only part of your market analysis, though. You must limit your property search to a specific neighborhood in your desired city.
Similar income properties in various parts of town can command significantly different prices and produce widely divergent returns. Mashvisor’s return on investment real estate calculator makes it simple and fast to locate the perfect neighborhood for your wallet and investment plan.
With Mashvisor’s real estate investment calculator, you can undergo a comprehensive neighborhood analysis with just a few clicks!
Mashvisor’s real estate heatmap is a quick and efficient approach to start your local study. The tool displays the profitability of neighborhoods in your chosen market using various color codes based on pricing, rental income (Airbnb and conventional), cash on cash return (Airbnb and traditional), and Airbnb occupancy rate.
You may use Mashvisor’s real estate investment return calculator to do a deeper insights research of top-performing areas that meet your plan after you’ve identified top-performing neighborhoods that meet your needs. For example, on the Neighborhood Analytics Page, the real estate investment calculator will give the following neighborhood-level real estate data and analytics:
- Number of traditional and Airbnb properties for sale
- The optimal number of bedrooms
- Optimal property type
- Average Airbnb occupancy rate
- Average Airbnb and traditional cash on cash return
- Average Airbnb and traditional rental income
- Average price per square foot
- Median price
- Walk Score
- Real estate comps
- Mashmeter Score
- Optimal rental strategy
The neighborhood insight feature allows you to learn more about the best home type, the number of bedrooms and rental tactics to utilize in your area (Airbnb vs. traditional). The Mashmeter, which operates in the form of percentage to deliver each neighborhood a rating that can be compared to other communities in the same or another city, is also available to property investors through Mashvisor.
- Mashmeter: The Mashmeter is a one-of-a-kind tool that can only be found at Mashvisor. It allows the investor to determine whether investing in a specific neighborhood is a good or poor idea. The score will be calculated as a percentage based on the qualitative and quantitative data gathered.
- Optimal Rental Strategy: Mashvisor’s real estate investment calculator uses the information gathered to provide an estimate of the optimal rental strategy for an investment property in a specific neighborhood. Traditional or Airbnb rentals will be the best options.
Selecting a neighborhood with a high-income potential is a proven method to make money in real estate. Rather than spending weeks or even months visiting areas and conducting market research, you can now determine the best spots to invest in a couple of minutes.
Mashvisor’s return on investment calculator in real estate also lets you obtain a detailed report for the location you’re looking at. The report contains all of the neighborhood’s property listings and their statistics in Excel format, so you can simply compare them. You can also share the documents with your real estate agent or colleague for feedback before proceeding with your property search.
Real Estate Investment Calculator: Investment Property Analysis
After deciding on a neighborhood for investment, the following step is to locate the most profitable income house for sale you can purchase. That will demand a thorough examination of several property listings within your price range and meet your investment criteria to select the ideal one for your situation.
Based on your neighborhood analysis, you should limit your search on these properties because you already have a strong concept of the best property type, amount of bedrooms, and rental strategy.
As a real estate investor, you should use Mashvisor’s Property Finder. It is a simple and practical approach to search for investment properties in 2022. The program will search your target market for homes that meet your particular set of criteria and have a good return on investment potential.
Now, you must undertake a thorough examination of these properties. Mashvisor’s real estate investment calculator comes in handy now. You’ll get a range of useful investment property data for each property you evaluate, such as:
Mashvisor’s rate of return on real estate investment calculator calculates one-time initial expenses and ongoing rental property charges for investors. Monthly expenditures predictions help calculate prospective cash flow, whereas start-up cost estimations will assist you in understanding your initial investment.
The estimated costs include the following:
Costs of a One-Time Start-up
- Closing expenses
- Inspection of the house
- Equipment and furnishing
- House repairing
Costs per Month
- Insurance for your property
- Tax on property
- Expenses for property management
- Homeowners’ association (HOA) dues
- Tax on rental income
Because it estimates rental revenue, the rate of return on the real estate investment calculator could also be used as a rental income estimator. However, you’ll need to research rental competitors in the region to evaluate rental revenue on your own, which is a time-consuming task. Mashvisor’s real estate investment calculator saves you time by quickly calculating Airbnb and traditional rental income predictions.
You can evaluate the future cash flow using rental income and rental costs estimations. You don’t need to, though, because Mashvisor’s cash flow calculator will calculate your cash flow for you. Nevertheless, it is advised that you only invest in properties that provide positive cash flow, mainly if you are a novice.
Return on Investment
The primary goal of rental property research for real estate investors is to explore the likelihood of profitability. Return on investment is a good indicator of this. Cap rate and cash on cash return are the two most crucial ROI measures.
Personally performing these calculations can be challenging, particularly when examining many rental property holdings. Nevertheless, in 2022, you may use Mashvisor’s real estate investment calculator for cash on cash return and cap rate to get quick approximations of these ROI numbers.
Our return on investment real estate calculator includes a mortgage calculator for investment properties. Depending on the mortgage data you enter, this interactive feature helps to evaluate your projected cash flow and cash on cash return. This covers the purchase price of the property, the loan amount, the kind of mortgage, the loan duration, the down payment, and the interest rate.
Cash on Cash Return
In basic terms, the cash on cash return is the rate of return on investment that an investor will get on a real estate investment depending on the profit generated by the rental property and the amount of money put in the rental property. To put it another way, cash on cash return tells property investors what percentage of profit they can expect based on how much money they put in.
The capitalization rate, or cap rate, is a real estate investment’s profit metric. Simply stated, it refers to how much of the property’s value an investor receives as income. A cap rate is a metric for determining how risky an investment is. The larger the cap rate, the greater the risk and the potential return. And the lesser the cap rate, the more negligible risk, and the lower the anticipated gain.
The Airbnb occupancy rate or traditional occupancy rate is a metric for rental demand that significantly impacts your rental income and ROI. However, predicting occupancy rates is problematic because it is dependent on numerous factors such as the location’s appeal, the property type, current market trends, your marketing abilities, and so on.
Depending on the success of real estate comparables in 2022, Mashvisor’s investment property calculator will provide you with precise occupancy rate forecasts.
Optimal Rental Strategy
You should first explore the two basic rental tactics before addressing how to choose the optimal rental property strategy for your property investment. This will help you comprehend the connections and differences between the two and decide which rental method is best for your specific business strategy.
You’ll obtain statistics for both Airbnb and traditional rental techniques for each of the critical metrics provided by the calculator. That will make it easier for you to assess and decide on the best rental strategy for your property.
Real Estate Comps
To prevent overspending, real estate investors should look at previous sales of similar homes in the region (real estate comparisons) to see if the purchase price is appropriate. Likewise, investors should consider the rates offered by comparable rental listings in the area when estimating rent.
Mashvisor’s real estate investment calculator makes finding real estate rental comps easier. It will provide you with a list of comparables as well as additional information about them to assist you in conducting your own comparative investigation.
So, to sum it up. First, you must find the perfect property in the appropriate profitable area for an effective real estate investment. That involves a thorough examination of the real estate sector and investment properties. Mashvisor’s real estate investment calculator will help you identify the best regions and investment houses for sale in the US real estate market, even if you’re a novice investor.
In addition to our investment property calculator that allows you to estimate your prospective profits depending on a variety of factors, Mashvisor has additional features. As a result, it is a great tool to use if you want to perform your own investigation without spending too much time in one city generating spreadsheets and calling agents. In addition, our website allows you to compare traditional and Airbnb rental methods, so you won’t have to look elsewhere if you discover that Airbnb isn’t the best option in your selected region.
Click here to discover more about how we can help you make faster and more informed real estate investment judgments!