Top 5 Rental Properties This Week: Jan 17th-23rd, 2021
In the first episode of the Mashvisor Real Estate Podcast: Top 5 Rental Properties This Week Mike Richardson, the star of the Mashvisor Consultancy Team, shows and analyzes 5 top-performing investment properties from across the US housing market. These properties are handpicked by Mike and are guaranteed to generate positive cash flow and above-average return on investment as traditional or Airbnb rentals.
Real Estate Podcast Transcript
Hey, everyone! I am so excited to welcome you to the first episode of the Mashvisor Real Estate Podcast. My name is Mike Richardson, the Investor Consultant and Senior Product Specialist here at Mashvisor.
I actually got into real estate kind of randomly, like most of us, right? But as soon as I joined Mashvisor, I was hooked. Since then, I’ve worked with literally thousands of real estate investors to help them find the most lucrative rental properties and opportunities in the US market. I’m helping investors identify the optimal financing options for their particular situation as well as the top real estate agents and best property managers in their market.
And after consulting investors – just like you – one on one for many years, I am thrilled to reach out today to talk about some new opportunities.
Today we’re gonna to look at the top 5 rental properties of the week. Of course, as always, I have Mashvisor, which is this really cool investment property analytics platform, open right in front of me.
Earlier this week I was doing my usual searches on Mashvisor’s platform to find some of the top-performing rental properties across the US. These are the properties that I use when talking to my investor clients to show them the potential of real estate investment opportunities. And I thought that I would love to share these 5 properties with you today.
So these are all properties that are currently available for sale. Like the majority of the listings on our platform, they come directly from the MLS. And what distinguishes these properties from hundreds and thousands of other properties on our platform is their rate of return.
I’ve looked at different price points, I’ve looked at different markets, and I’ve selected these top 5 properties which show a higher return within their price brackets. All I needed to do was select the right markets, set up the filters, and the Mashvisor AI-powered machine-learning algorithms did the searches for me. I organized the search results by the highest cap rate.
So here are the top 5 rental properties of the week. And by the way, you can find the link to each of these properties on Mashvisor’s platform in the show notes of this episode. These come with the property address, goocomprehensive property characteristics, and complete analysis of their expected cost, rental income, occupancy rate, cash flow, and cap rate. All these figures are available for both renting out the property as a short-term rental or renting out through the traditional strategy.
First on our list today is a property in Minneapolis, Minnesota. The address for the property is 3820 Cedar Avenue S. It’s in zip code 55407. The asking price is $254,900, and it is a 4-bedroom, 2-bathroom gorgeous single-family home with 1,764 sq ft.
What really stood out for this property for me is its rate of return in both Airbnb and traditional. It has a potential of rental income of $3,787 in monthly average gross as an Airbnb strategy and $2,130 as a traditional strategy.
When placing 20% down at a 30-year fixed interest rate of 3%, this property has a 22.79% cash on cash return as an Airbnb strategy, which is absolutely phenomenal, especially at this price point. And it’s traditional cash on cash return is at 8.22%. Its overall cap rate percentages are at 9.36% and 5.95% for traditional strategy, making it very close to a 6%. This property has phenomenal occupancy rates for both Airbnb and traditional. We are looking at top-performing properties when comparing this property to those properties. So a 78% occupancy rate for Airbnb and 96% for traditional.
This property is still new on the market, so take a look at the property. It could be a great fit for you.
Second, we have a home in Galveston, Texas. The address for the listing is 6315 Heards Lane. It’s in zip code 77551. The asking price for the property, especially in this price point and market, is $210,000, which is a great price point for a beautiful single-family home with 4 beds and 1 bath. It has almost 2,000 sq ft, making it a beautiful single family home that can be a great opportunity.
Now, this property is an outstanding Airbnb property. It has a potential rental income of $3,970 average per month. You’re gonna have some months where you’re gonna outperform that and other months where it’s gonna decrease. But our annual gross makes us close to $48,000.
And it also has a great traditional strategy. It’s able to generate $1,950 every single month.
When placing 20% down over a 30-year fixed mortgage, this property will generate a 37.82% cash on cash. Again, that’s a 37.82% cash on cash, making it an outstanding opportunity. It’s still a new listing, so it’s a great property to consider. It has a great traditional strategy as well, putting it at 12.97% for cash on cash.
Its cap rates are at 13.18% for Airbnb, which is above market expectations, and markets like these would be lucky to get 10%. So I’m sure that this property is not gonna stay in the market for long. And the cap rate for traditional is at 7.17%.
Great occupancy rates for these rental values. You’re getting almost 50% on Airbnb, so it gives you a lot of space and room to be able to improve the Airbnb performance. And with traditional, you’re right above 90% for your occupancy rate. Reducing a lot of vacancy, this property will perform well no matter what strategy you chose.
A third very exciting listing for today is another single-family home, and we are going east to Raleigh, North Carolina. The address for the home is 2021 Waters Drive. Zip code is 27610. Asking price is at $219,900. It’s a beautiful single-family home with 4 beds, 2 baths, 1,639 sq ft.
Now, this property is an even better property than the one in Galveston. This property has a potential cash on cash return at 46.86% with a 30-year fixed mortgage at 3% interest rate, just giving you that balance interest rate, putting 20% down. So this is an outstanding property. I thought it was still better than the one in Galveston, especially since it has a 62% occupancy rate, so it has a much more stable occupancy rate, putting its cap rate at 15.22%. A potential rental income of $4,617 averagely per month. And with such a high occupancy, we are talking about a great, stable location for Airbnb.
And if you decided to take this property and switch over to traditional, you’re gonna be generating almost $25,000 in annual gross. Your average per month is gonna be $2,079. This property will have a 15.77% cash on cash return, with a 7.79% cap rate. So when financing your property, this property is gonna pay off its mortgage, it’s gonna cash flow. I want you to hear how great this sounds. If you were to purchase this home and put 20% down, this home will pay off its mortgage, it will pay off all of its expenses, such as insurance, utilities, management, maintenance, property taxes, and additional expenses and still cash flow $2,000 every single month. So we are looking at a great opportunity here, especially for Airbnb.
A fourth property of the day is going to be in Colorado Springs, Colorado. Address of the home is at 4584 Gray Fox Heights. It’s a single-family home in zip code 80922. Great price point at $169,500. It’s a 3-bedroom, 2-bathroom single-family home with 1,472 sq ft. So great price per sq ft at $115.
When purchasing this home and putting 20% down over a 30-year fixed mortgage, you can expect a 43.2% cash on cash return. Now, this property has a phenomenal occupancy rate. At this price point, this property will generate 83% occupancy rate over Airbnb. We are talking about an average cap rate of about 14.75% and an average income of $3,358 a month. Imagine a $17,000 home is generating an almost $3,800 in gross. So it’s a great property to consider.
It also has an outstanding traditional strategy. A very, very strong strategy for traditional. It has one of the highest occupancy rates for its rental value. It’s rental income is at $1,700 with a 97% occupancy rate. So you are practically talking about no vacancy. This property will rent out if you need it to as a traditional property the quickest way possible.
When financing this property through a traditional strategy, you can expect a 19.82%. A phenomenal cap rate at 8.96%.
Again, these are homes that are on the market. They have great performances, so you wanna make sure that you start looking at some of these properties because they can be a great fit for you. We’ve talked about a couple of different price points, from $170,000 going all the way up to $264,000.
But I wanted to leave the last property in Palm Springs for last because it is an absolutely outstanding property. It was my favorite property of the week. It has a great list price. Its estimated value compared to the list price is phenomenal. This property is in Palm Springs, California. It’s a beautiful, gorgeous single-family home. Address is 1102 Palmas Ridge. Zip code is 92262. List price is $445,000 with 3 bedrooms, 2 bathrooms, 1,411 sq ft. The actual asking price is exactly for its estimated value, so you’re getting a property that’s exactly priced properly. It’s a great property to consider. I want you to hear about this absolutely phenomenal great rate of return.
So as we know with our prices points cap rate and cash on cash return decrease. This is an example of a property that breaks that equation. And it does absolutely phenomenal. We’re talking about a $445,000 home that has the potential to generate averagely $7,343 every single month through an Airbnb strategy. Mashvisor’s been able to help us find this property, and I think it’s absolutely phenomenal. It has a great cash on cash return, putting it at 35.67% with almost a 12% cap rate, averaging a 71% occupancy rate. So this is a property that will pay off its mortgage, it will easily pay off its expenses, and will cash flow about $3,000 every single month. So this is an absolutely outstanding Airbnb property. And if you think that’s too good to be true, just take a look at its traditional strategy. An average rental value of $3,331 every month. This property has a 7.26% cash on cash return, with one of the highest cap rates at its price point, a 5.64% with a 95% occupancy rate. A property like this will be very lucky to generate a 4%. We are talking about a property that has the potential to generate right above 5.5%, so an outstanding property to consider.
These are great properties that are on the market. I actually had one more property in mind, but before we had the chance to do our podcast today, that property was sold yesterday, so we never got the chance to talk about it. These are great opportunities. I want you to have a chance to take a look at some of these properties. I think they can help you achieve great and massive success through real estate.
So, guys, these are the 5 properties that are some of the absolutely most profitable opportunities within their price ranges. I’ve searched through literally thousands of real estate listings over the week just to see what kind of available properties are there. And I think that if you take a chance to explore some of these properties, it will be a great fit.
We’re almost done with our first episode of the Mashvisor Real Estate Podcast. But before I go, I want to give you a special gift. If you want to use our super user-friendly platform to find top-performing Airbnb and traditional rental properties across the US, make sure to sign up to Mashvisor with promo code TOP5, and this will give you a 15% discount on a quarterly or annual subscription, and that is forever. Moreover, you can get a 7-day free trial. This will give you the chance to test out the product, make sure it’s a great fit for you. Take a look at some of these properties, and I think they’re gonna be a great fit.
That’s all from me for today. I hope that you enjoyed our Top 5 Rental Properties This Week. Stay on the lookout for our next episode.
To listen to more episodes of the Mashvisor Real Estate Podcast, click here.
