Return on Investment Real Estate Analytics

Mashvisor allows you to find real estate investment properties anywhere in the US with a complete set of analytics and data related to the return on investment of the properties that you’re interested in:

• Obtain return on investment data on individual properties.
• Acquire data comps and return on investment averages for an entire neighborhood.
• Compare a number of different properties to determine the one with the highest return on investment.

Multiple Return on Investment Calculations

Mashvisor does not only provide you with a single type of return on investment. With Mashvisor, you gain access to a number of different metrics that will give you information on the expected return on investment for the income property in multiple different ways:

• Cap Rate: Return on investment based on the current value of the income property.
• Cash on Cash Return: Return on investment based on the actual cash invested in the income property.
• Cash Flow: The actual income that the income property will generate after subtracting all costs and expenses.

Return on Investment: Cap Rate

The cap rate is one of the main metrics used to determine the return on investment on our platform, and one of the most commonly used metrics calculated by real estate investors when assessing an investment property. Cap rate allows you to know how profitable an investment property is based on its current market value and the income that it generates.

Cap Rate Algorithm:

Cap Rate = NOI (Net Operating Income) / Current Property Value

Cash on Cash Return on Investment

The cash on cash return on investment metric is used to determine the profitability of an investment property based on the amount of cash you’ve paid for it. This is an especially useful metric to determine the leverage that you have on a property as it leaves out the amount of mortgage financing out of the equation.

Cash on Cash Return Algorithm:

Cash on Cash Return = NOI (Net Operating Income) / Cash Invested

Cash Flow

An income property’s cash flow can either be negative or positive cash flow. Real estate investors use the cash flow as an indicator of an investment property’s profitability and the actual cash that it generates. A negative cash flow income property indicates that the property is costing the investor more money than it generates.

Cash Flow takes into account the amount of rent that you charge for your rental income minus all expenses:

• Mortgage payments
• Taxes
• Maintenance costs
• Vacancy rate
• Any other expenses that apply

Return on Investment Property Filters

Searching for a property based on its return on investment has never been easier. With Mashvisor, you can use the property filters on the platform to modify and customize your search results, filtering out any properties that do not meet your search criteria based on the different metrics of evaluation:

• Set the minimum cap rate for the investment property that you’re looking for.
• Set the minimum cash on cash return for the income property that you’re looking for.
• Look for rental properties with a desirable and positive cash flow to generate a rental income.

Easy-to-Read Investment Property Reports

Are you unsure of your decision? No problem!

With Mashvisor, you can easily export, download, or share a property’s report including all of its data, analytics, and projections of its return on investment using the different metrics (cap rate, cash on cash return, and cash flow) with a friend, family member, or a real estate agent to get a second opinion and help you make your decision.