Buying a real estate property with the goal of renting it is an investment that insures a constant cash flow income. However, it is important to measure the performance of a rental property investment and to understand the income property meticulously. That is why every investor needs a tool to provide them with the numbers and calculations of a certain property, so they can better decide if that property is worth it or not. A rental property calculator does just that.
A rental property calculator or investment property calculator is an application that provides fundamental financial analysis. It helps investors determine the profitability of a potential rental property and estimate potential monthly and annual cash flow. Investors can calculate on investment overtime and plan for unforeseen expenses. Rental property calculators help investors in saving a lot of time. So where can one find a rental property calculator? For starters, Mashvisor! Mashvisor provides for you a rental property calculator that can help you with all the calculations you need to make your investment decisions.
Related: Why You Should Consult a Rental Property Calculator First
What does a rental property calculator calculate?
An investment property can be an excellent investment. A rental property calculator is designed to examine the potential return you might receive from an investment property. It calculates the following:
- Cash invested
This is the money you as an investor actually have to put down on a property. Usually it is the amount of earnest money you invest in property.
This is the amount of interest the investor pays annually to borrow money from the lender.
- Land value
This is the approximate value of the land that the property sits on. It’s usually available on the tax records in the county the property resides.
- Total deprecation
This is the total amount you can depreciate annually on personal property and building value.
- Total annual operating expenses
This the total annual operating expense including real estate tax, repairs, management fees, insurance, utilities, supplies and other miscellaneous expenses.
- Cash flow before tax and annual debt service
This is what’s left after expenses, principle payments and interest. Also you payment to lender including principle and interest.
- Investment appreciation and total return
This is the annual percentage of appreciation of property and the total analyzation of returns of the property.
Related: Think Like A Rental Property Calculator: Numbers You Need To Know
What does Mashvisor’s rental property calculator provide?
Mashvior’s rental property calculator provides neighborhood-based and property-based data. For neighborhood-based data, Mashvisor serves you all the real estate investing numbers you need to know about each neighborhood. This helps investors in deciding whether or not a certain neighborhood is good for investment. Mashvisor’s rental property calculator also provide for you optimal property type, strategy and number of bedrooms. Our rental property calculator will help you in choosing the best strategy for investment and will give you advice on the profitable property. Trust me rental property calculators will make any investor’s life easier! For property-based data Mashvisor’s rental property calculator provides for you estimates of all the costs related to renting an income property. It will provide for you monthly expenses, cash low and rental income as well.
Advantages of rental property calculator:
- Fast and easy
Calculating numbers can be a real headache and needs a lot of attention. Why go through all the stress and trouble when a rental property calculator can analysis all your numbers easily?
- More accurate
We can all sit down and try to calculate and come up with an answer, yet no matter how smart you are in math there is always space for mistakes. Rental property calculators are more accurate and precise when it comes to calculations. Like Mashvisor’s rental property calculator uses comparative and historical data that are more likely to have accurate estimations than using spreadsheets.
- Help you make good decisions
A rental property calculator will help you make a good financial projection of your next rental property purchase and will measure the potential of its net profit for a specific period of years. We all need some sort of help when is comes to decision making especially in real estate.
What does BiggerPockets’ rental property calculator provide?
BiggerPockets’ rental property calculator helps you in determining the effective benefits of a potential rental property. It provides you with the estimated amount of monthly cash flow. BiggerPockets’ rental property prepares you for unseen expenses so you can plan quickly. Whats unique about BiggerPockets’ rental property calculator is that it can create for you printable PDFs so you can easily show them to your lenders.
What does Investfourmore’s rental property calculator provide?
Investfourmore’s rental property calculator helps you in calculating you cash flow based on your monthly payments. This calculator provides for you a table with suggested values based on the condition of a certain property. Investfourmore provides for you different types of calculators like cash flow calculator or fix and flip arv calculator.
The bottom line is- don’t waste your time estimating how much your annual income may be. Or calculating cash flow of interest rates all by yourself. Real estate investment needs a lot of thought and a lot of accuracy and in order to be completely sure of you decision all your numbers need to be calculated correctly. Rental property calculators provide investors with this kind of help. Our Mashvisor rental property calculator can help you throughout the whole process.