Everyone likes a good real estate deal. That’s why many real estate investors are currently on the lookout for cheap houses for sale in the US housing market. With houses in the US becoming so expensive in major real estate markets, it’s becoming harder and harder to find this elusive type of investment property.
What’s even more elusive is cheap real estate that actually provides a good return on investment when rented out to tenants. You see, a good real estate deal is not just one that comes with a low price. It’s one that will actually produce positive cash flow.
A common issue with cheap investment properties for sale is that they may be run-down or located in bad neighborhoods. So if you’re looking to rent one out (or even flip it), you may fail to do so. This would mean that you’ll be struggling with a negative cash flow investment property for who knows how long.
So how can you avoid that scenario when searching for cheap houses for sale? It all comes down to how you go about searching for these properties. And in 2020, the best way to go about your investment property search is with real estate investment software. Let’s take a look at three must-have real estate investment tools for anyone interested in buying cheap houses for sale that will generate an income.
How to Find Cheap Houses for Sale: 3 Must-Have Real Estate Tools
If you want to streamline the process of finding cheap houses for sale that are profitable, you’ll need these tools in your real estate toolbox:
- Real Estate Heatmap
- Rental Property Finder
- The Mashvisor Property Marketplace
#1. Real Estate Heatmap
If you shuddered at the thought of owning a rental property in a bad neighborhood where no one wants to rent from you, then you need the Real Estate Heatmap. This tool will allow you to conduct a neighborhood analysis in just a few minutes.
Say you want to find cheap houses for sale in the Philadelphia real estate market. A real estate heatmap analysis tool will allow you to find affordable neighborhoods in Philadelphia that match your budget. Mashvisor’s Real Estate Heatmap, for instance, has a filter for listing prices. If you select it, you’ll get a quick overview of where to find cheap houses for sale– these would be the neighborhoods marked in red and orange:
Mashvisor’s Real Estate Heatmap – Affordable Neighborhoods in Philadelphia
And because you want to find an affordable neighborhood that promises positive cash flow, Mashvisor’s Real Estate Heatmap comes with other filters to help you find this exact location in the real estate market of your choice. These include:
- Traditional Rental Income
- Airbnb Rental Income
- Traditional Cash on Cash Return
- Airbnb Cash on Cash Return
- Airbnb Occupancy Rate
If you want to narrow your search for cheap houses for sale down to an affordable neighborhood where traditional rental properties have good cash on cash return, you have to set the two filters one by one and note where there is an overlap. Let’s take a look at which affordable Philadelphia neighborhoods (as pictured above) also have high cash on cash return:
Mashvisor’s Real Estate Heatmap – Traditional Cash on Cash Return Filter
As you can see, neighborhoods that were marked red with the listing filter and now green with the cash on cash return filter are the best neighborhoods in the Philadelphia housing market. There, you’ll find cheap houses for sale with a good return on investment.
But how can I find cheap houses for sale near me?
Well, if you’re not interested in long-distance real estate investing, you can still use the Real Estate Heatmap to analyze neighborhoods in your local housing market. Just keep in mind that they should be profitable neighborhoods! The Real Estate Heatmap will help you figure out if they are. Try it out for yourself now.
Related: Finding Income Properties Using a Heatmap
#2. The Rental Property Finder
If you already know where to find cheap houses for sale and are just interested in finding ones that produce positive cash flow, then you can jump right into using the Rental Property Finder. This real estate investment tool has a few neat filters that will help you find the investment property you’re looking for:
- Location
- Miles from the Location
- Budget
- Rental Strategy
- Type of Property
- Number of Bedrooms and Bathrooms
Let’s say you want to find cheap multi family homes for sale in the Chicago housing market and your budget is $70,000. You’d set:
- The location filter to Chicago, IL
- The budget filter to $0k-$100k
- The type of property to multi family
Here’s what the results would look like today:
Mashvisor’s Rental Property Finder – Cheap Multi Family Homes in the Chicago Housing Market
Mashvisor’s Rental Property Finder instantly found investment properties for sale that matched your hypothetical criteria. In fact, this powerful tool actually found even more affordable real estate for you. And look at the cash on cash return for each one! The Rental Property Finder shows you only the top-performing investment properties for sale in the real estate market of your choice.
You can even click on any of the cheap houses for sale that interest you. Doing so will allow you to view the Property Analysis Page and use the investment property calculator to carry out a full real estate investment analysis based on your financing method.
Sign up for Mashvisor now and find top-performing affordable real estate in the US housing market 2020 today.
Related: The Best Way to Find Rental Property for Sale: AI
#3. The Mashvisor Property Marketplace
It’s well-known that if you’re in the market for cheap houses for sale, you should look for:
Any one of these types of real estate investment properties can make for a good real estate deal. That’s because most of them have a price tag that is actually below market value. At the same time, some of them (like foreclosures) are considered risky real estate investments. So a lot of beginner real estate investors decide against buying one, no matter how affordable they may be. But what if there was a real estate investment tool that helped you find cheap foreclosed homes and the like while also reducing the risk that comes with them significantly? That tool is the Mashvisor Property Marketplace. And it helps to reduce the investment risk by giving you access to the numbers that you need to fully analyze an investment property.
Perhaps you’re looking for a foreclosed home in the Los Angeles real estate market and your budget is just under $100,000. Visit the Mashvisor Property Marketplace and set the following filters:
- Location: Los Angeles, CA
- Budget: between $55k and $100k
Here is what the results would look like:
Mashvisor Property Marketplace – Los Angeles Properties for Sale
As you can see, there are currently two cheap houses for sale that match your hypothetical criteria. Could you imagine how hard it would be to find these two investment properties in the Los Angeles housing market using traditional search methods? With the Mashvisor Property Marketplace, it took only a few seconds.
You can also set other investment property search filters including:
- Miles from the Location
- Rental Strategy (Airbnb or Traditional)
- Type of Property
- Number of Bedrooms and Bathrooms
- Cash on Cash Return
- Cap Rate
- Listing Type (Non MLS, Foreclosures, Needs Repair, Tenant Occupied)
And you can also click on any real estate listing in order to access the investment property calculator and conduct a full analysis of the property.
Related: The Best Tool to Find Off Market Properties
Find Affordable Real Estate for Sale Today
You may think it’s impossible to find cheap real estate in the US these days. But if you’re using the right tools, you’ll be spotting real estate deals all over the country in no time. Start your 7-day free trial with Mashvisor now to get access to these tools.