Every real estate investor or real estate agent dreams about effortlessly making money in real estate. In reality, there are many steps real estate investors and real estate agents need to take before buying a property/selling a property or advising someone in buying a property/selling a property, respectively.
When attempting to find the best real estate investments, for instance, the real estate investor/real estate agent needs to conduct several analyses. Such are the real estate market analysis along with investment property analysis. Comparative market analysis reveals if the current state of the market is a seller’s market or buyer’s market, for instance. This might be used in order to adjust investment strategy, for instance. When speaking about investment property analysis, we immediately think of real estate metrics, such as cash on cash return, cap rate, return on investment, occupancy rate, etc. Even though these metrics have quite simple formulas for computation, it sounds nearly impossible to calculate each of them manually when comparing various properties in the search for the best real estate investments.
Nowadays, due to the technological developments and advanced methods, real estate investors and real estate agents can conduct comparative market analysis and investment property analysis with ease. This can be achieved with the help of the rental property calculator. The rental property calculator is thought to be the must-have tool in real estate investing, and here is why.
#1 The Rental Property Calculator
The rental property calculator is also known as the investment property calculator. In its essence, a rental property calculator is an online tool which can help real estate agents and real estate investors in finding the most profitable rental properties.
The reason both real estate agents and real estate investors stand by it is that the tool is extremely helpful in both careers. This is so as the tasks of a real estate agent and a real estate investor overlap prior to actually buying an investment property. They both involve exploring the local housing market and conducting neighborhood analysis. Besides, in order to find the best real estate investments, it is absolutely necessary to get the values of cash on cash return, cap rate, return on investment and occupancy rate for the chosen rental properties. All of these are things in which the rental property calculator can help tremendously. Interested to learn more about the rental property calculator? Make sure to read “Rental Property Calculator: The Must-Have Real Estate Investment Tool.”
Let’s explore how the investment property calculator is useful for the different types of analyses.
#2 The Rental Property Calculator and Real Estate Market Analysis
Real estate market analysis, or the so-called comparative market analysis, represents the in-depth exploration of the local housing market. As previously mentioned, this involves examining the state of the market- buyer’s market or seller’s market. A buyer’s market means that the market favors the buyers. Thus, the property prices are relatively affordable. A seller’s market, on the other hand, means that the property prices have risen. Thus, the sellers are in the better position.
Additionally, this analysis requires the comparison of a chosen property to real estate comps. Real estate comps are recently sold properties within the area with similar features to the chosen rental property. Real estate comps may help in establishing an asking selling price for your investment property or an asking rent price for your rental property.
All of these variables play a significant role in finding and managing and selling investment properties while making money in real estate. Nevertheless, it is quite hard to complete the analysis by hand. The rental property calculator is here to help. Would you like to know how, in a few steps, you are able to conduct real estate market analysis? Make sure to read “Real Estate Market Analysis in 6 Simple Steps.”
Mashvisor’s rental property calculator will provide you with detailed neighborhood analysis. Besides the neighborhood analysis, you will be able to compare different investment properties much more efficiently. The investment property calculator also indicates the median property price in the region. Moreover, it indicates other metrics important to assess the performance in the area. This is extremely useful when selling a property as well as buying a property.
#3 The Rental Property Calculator and Investment Property Analysis
Investment property analysis has everything to do with the investigation of the actual investment properties. This includes computing various real estate metrics for each investment property in order to find the best and potentially most profitable one. When searching for a rental property, for instance, it is necessary to calculate the real estate metrics for various investments. This is in order to select the most successful one. Besides the time needed for completing the research, there is a great risk involved of miscalculation while computing numbers manually. The rental property calculator comes in as a very handy helper in such cases.
Mashvisor’s rental property calculator computes quickly and accurately all the possible real estate metrics you might need. Such are, for instance, cash on cash return, cap rate, return on investment, occupancy rate, etc.
Besides that, the tool suggests the optimal rental strategy for each of the chosen rental properties. Choosing the optimal rental strategy lays as the base of making money in real estate. In addition to presenting you with the optimal rental strategy, Mashvisor’s tool allows you to select the financing method of your investment in order to generate more precise results. Curious to find out how to do investment property analysis? Make sure to read “How to Do Investment Property Analysis.”
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