Real estate is one of the best income generating assets for any aspiring investor. However, if you want to have a successful real estate investment, knowing how to find investment properties with a good return on investment is important. As more people become interested in real estate investing, the market gets more crowded. There are also thousands of properties available in the market to choose from. As a result, finding profitable real estate deals is becoming increasingly challenging. This is where technology comes in handy.
To become a millionaire in real estate investing in modern times, using technology is very crucial. There have been many real estate success stories over the years and real estate investors have attributed their success to a number of factors. However, in recent years, the use of real estate investment tools to find and analyze investment opportunities has proven to be vital if you want to have a successful real estate investment. With these tools, you will be more efficient in your decision making and improve your chances of success in real estate. While you can still invest in real estate without these tools, it can be very time-consuming and challenging for you, especially if you are still a beginner real estate investor.
Here are the tools you will need to use if you want to be a successful real estate investor.
Related: The Most Successful Real Estate Investors and Their Secrets
1. Heatmap Analysis Tool
A profitable location is a prerequisite to a successful real estate investment. If you are thinking of owning a rental property, you need to first find an optimal city that is well known for successful real estate investing. You should then focus on finding a neighborhood within the city that has the best investment performance depending on your budget. The heatmap analysis tool is a must-have real estate investment tool to help you in choosing the right location. It is a quick and efficient way to run a neighborhood analysis.
A heatmap is a visual representation of data on a map, where different color codes are used to represent different ranges or percentages. It helps the investor to have a graphical overview of the areas with good performance according to specific metrics. By aggregating data about neighborhoods in a visual context rather than in numerical form, you can find and absorb the information you need much faster. It will also help you see any correlations more effectively.
With Mashvisor’s heatmap analysis tool, you can identify profitable neighborhoods in any city across the United States for both traditional and Airbnb investment properties based on four key metrics. These metrics include:
- Listing Price
- Rental Income (Traditional and Airbnb)
- Cash on Cash Return (Traditional and Airbnb)
- Airbnb Occupancy Rate
You can also use the tool for reassurance of the real estate potential of a location if you already have one in mind. To use the tool, you just need to set the appropriate filters and it will quickly give you a visual summary of neighborhoods with available investment properties based on your criteria.
2. Property Finder
Now that you have found the right neighborhood, the next step is to pick the right investment property. To have a successful real estate investment, you need to find an investment property that matches your investment goals. Not all properties will be suitable for you. You can still do your property search the old way by looking at newspapers or driving around the neighborhood. However, now that we’re living in the age of the internet, there are online tools that you can use to find investment properties more effectively. One such tool is the property finder. It is also an important tool you should use if you want to own a successful real estate investment.
A property finder is a digital tool used to find profitable income properties that match the user’s preferences and search criteria. Property finder tools are not all the same and, therefore, may give different results. Most of them will typically provide listings based on the type of data that their platform has. Mashvisor’s property finder tool uses a wide range of real estate comps and analytics to provide listings of properties (Airbnb and traditional) with the highest potential for returns based on their cap rate, cash on cash return, and occupancy rate.
You can use Mashvisor’s property finder tool to find investment properties using the following main filters:
- Preferred Location (up to 5 cities)
- Rental Strategy
- Type of Investment Property
- Number of Bedrooms
- Number of Bathrooms
After setting the filters, the tool will provide you with a list of top-performing investment properties that match your criteria. Get started with this tool now for free.
Related: Rental Property Finder: A Revolutionary Tool for Investing in Real Estate
3. Investment Property Calculator
Finding investment properties is not the end. If you want to own a successful real estate investment, you need to properly analyze the different income properties. You can then compare them to ensure that the property you select will be the most profitable. The real estate investment tool that will help you achieve this is the investment property calculator. If you are looking to have a successful real estate investment, this is one tool you can’t go without.
The investment property calculator, also referred to as the rental property calculator, is an online tool that is used to calculate crucial numbers needed to assess the potential of an income property in terms of generating high returns and positive cash flow. To get these metrics, you just key in some basic information about a property, such as the financing method, the cash investment, etc.
Mashvisor’s rental property calculator uses real estate data and analytics to calculate the expected rental income, rental expenses, cap rate, cash on cash return, and occupancy rate of an investment property. It does this analysis for all properties listed in the platform. The numbers are integrated into two categories, i.e. traditional and Airbnb. This will help you in choosing the optimal rental strategy for your income property.
Mashvisor’s calculator is also useful for comparative market analysis because it provides real estate comps for properties listed on the platform. This will ensure you find the best investment property at a good price.
Related: Why an Investment Property Calculator Tells You More Than Just Numbers
The Bottom Line
With the current highly competitive real estate market, making money in real estate is not a walk in the park. To have a successful real estate investment, you need to know how to find the best performing investment properties in the best locations. To achieve this, you need to conduct thorough research and analysis. Mashvisor’s real estate investment tools will help you to quickly and efficiently find investment properties that are in line with your goals. By using these tools, you will alleviate the risk of making uninformed decisions. Mashvisor’s tools are comprehensive and user-friendly, thus making getting rich with real estate possible for anyone. Whether you are a beginner real estate investor or an expert, you should be using them if you want to own a successful real estate investment.
To start your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount after, click here.