Looking for residential income properties for sale is the first step once you decide to enter the real estate investing world. Thanks to the internet, the process has been since more efficient and less time-consuming. Still, you might need a little help. So in this blog, we provide you with 4 tips that can be useful when looking for residential income properties for sale online.
Tip #1: Research location
The success of a real estate investment is largely bound by its location. As you should probably know by now, property location is the most important factor when it comes to making money in real estate investing. When you find rental property online, the first thing you should do is research the location. Is the demand for rental properties high in that area? What are the prospects for real estate investing there?
As a rule of thumb, the population growth and unemployment rate are two factors that indicate whether a certain location is worth investing in. Looking up these indicators for the location you have chosen is necessary before investing in residential income properties for sale.
Related: Location Location Location: What Makes for the Best Place to Invest in Real Estate?
Tip #2: Use online property finders
Searching real estate listings online simplifies the process of finding a real estate investment property. There are a handful of real estate investor websites that allow you to search for investment properties that match your real estate investing preferences. The best online property finders allow you to filter your search according to the type of residential income properties for sale, price range, and what is more important- their performance as an investment property.
Here is a list of the top online property finders that you can use to locate residential income properties for sale.
- Realtor.com
- Zillow.com
- Trulia.com
- Mashvisor.com
What makes Mashvisor different from other property finders is that it is not just a property finder. Mashvisor is an all-in-one real estate analytics platform that can help you find investment properties in any real estate market in the US. Furthermore, using specially developed real estate technology, Mashvisor is able to provide real estate investors with important real estate metrics that are useful for determining the profitability of an investment property. One of the special features of Mashvisor’s property finder is the ability to sort out investment properties from best to worst, best being the property with the highest return on investment (ROI) that is the closest to your investment preferences and strategy.
Mashvisor’s Property Finder
Related: Finding an Investment Property: Traditional vs. Mashvisor
Tip #3: Understand the real estate data
When it comes to researching residential income properties for sale online, you will probably encounter reoccurring real estate metrics. It is important to understand each of these metrics as they can be important real estate investment tools to assess the performance of investment properties.
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Cap rate
Cap rate is a real estate profitability calculation that is derived by dividing the net operating income (NOI) by the current market value of the investment property. The calculation of cap rate is independent of the financing method, and therefore it is considered to be the purest form of return on investment.
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Cash flow
Cash flow is simply calculated by deducting operating costs from the rental income. Making money in real estate investing implies investing in positive cash flow properties because otherwise you would be losing money or breaking even. Investing in negatively geared residential income properties for sale is not impossible though. You can learn more about this investment strategy by reading: How to Turn a Negative Cash Flow Rental Property into a Positive Cash Flow Rental Property.
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Occupancy rate
The occupancy rate of an investment property is an important metric for real estate investors, especially those investing in short term Airbnb rentals. The higher the occupancy rate is, the less is the risk of having a vacant property, which is the worst scenario if you own an Airbnb rental property.
Mashvisor takes real estate investing into another level by providing all these real estate calculations using predictive analytics. All you have to do is choose an investment property that matches your investment needs and we will provide you with these real estate calculations.
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Tip #4: Use an investment property calculator
The best investment property calculator in 2019 is, without a doubt, the one Mashvisor offers. Using an investment property calculator to find residential income properties for sale is definitely rewarding. In addition to performing investment property analysis by calculating the real estate metrics above, the real estate investment tool offers additional special features that can save you both time and money.
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Neighborhood analysis
Neighborhood analysis is the basis of a real estate market analysis. The investment property calculator from Mashvisor provides you with neighborhood data such as median property price, average rental income, and average Airbnb occupancy rates. That way you can be sure to choose the most profitable locations for your rental property which, as mentioned, is really important.
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Optimal rental strategy
Based on the investment property’s occupancy rate and location, the rental property calculator can advise you which is the optimal rental strategy for your property. The choice between traditional strategy vs Airbnb strategy is made easier once you start using Mashvisor’s investment property calculator.
Mashvisor’s Investment Property Calculator
Related: Why Mashvisor Is the Best Real Estate Website in the US
The Bottom Line
Finding residential income properties for sale online is not that complicated once you know where to look for investment properties and how to interpret the numbers you see online. Mashvisor is your best friend when it comes to finding residential income properties for sale. We help you find the investment property of your dreams, analyze it, and predict your profit.
To start your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount after, click here.