And if done right, there is no profit quota, and investors can earn a high ROI and a big lump sum of money. And as a result, one profitable real estate transaction can spiral into a full fledged business for those investors who take on investing as a full-time job. Simply put, residential real estate investing is a lucrative business because people will always need a place to live.
The US housing market in 2018 is looking optimistic, and people are jumping on board to find the best investment property for sale and hit the road running. Whether you are a beginner real estate investor or a pretty experienced one, to find the best investment property for sale this year will be quite the challenge. But fret not, we will break it down and give you the nitty gritty detail of finding the best investment property for sale to make profit and grow your returns.
First Things First: Real Estate Market Analysis
Ok, so you’ve heard it before: real estate investing is a very lucrative business venture. BUT, not without the proper due diligence. By due diligence, we mean proper market research, acquiring the right education, keeping up with the housing market and economic trends, etc. If you don’t know the difference between a seller’s market and a buyer’s market, you won’t know whether it is better to buy or sell real estate. If you want to have leverage as a real estate investor, you should become your very own expert. There is a ton of readily available resources on the web: from blogs to podcasts. So, there is no excuse.
One very important step before finding the best investment property for sale is doing the right research and conducting real estate market analysis. Real estate market analysis tools come in many ways, and it is up to you to find the best research methods that work for you. You can hire a real estate expert to help you get started, or you can use Mashvisor as a tool to give you deep analytics and insight into residential real estate properties across the country.
Who Is Using Mashvisor?
Everyone who is interested in real estate investing can use Mashvisor:
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- First-time real estate investors
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- Experienced real estate investors
What Does Mashvisor Offer Real Estate Investors?
In a nutshell, Mashvisor allows you to find lucrative residential properties (traditional or Airbnb) affording you with deep insight and analytics. And you don’t have to worry about spreadsheets, because everything is refined and organized in a way to help you find the best investment property for sale in a matter of minutes.
The benefits of using Mashvisor include but are not limited to:
1. A Rental Strategy Comparison
You find the best real estate comps using the following key metrics:
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- Rental Income
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- Cash Flow
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- Cap Rate
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- Occupancy Rate
- Monthly Expenses
2. Interactive Purchase Analysis and Investment Property Calculator
Real estate investors especially love Mashvisor’s investment property calculator because it helps them estimate their returns quite effortlessly. Not only can you enter your own numbers, but the calculator allows you to modify the numbers it proposes to you: one-time startup costs, recurring expenses, mortgage payments, etc.
In this way, real estate investors are able to find the best investment property for sale reaping positive cash flow returns after taking into account all expenses. The investment property calculator makes perfect sense, as with Mashvisor you can guarantee profitable returns without doubting and second guessing.
3. Property Comparison
Mashvisor’s valuation analysis tool allows real estate investors to view and compare nearby Airbnb and traditional listings via:
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- Overall Rating (based on distance, property type, and number of beds and bathrooms)
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- Airbnb Nightly Rate
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- Airbnb Ratings and Reviews
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- Rental Income
- Number of Bedrooms and Bathrooms
4. Neighborhood and Property Analysis
You also get an overall evaluation of the neighborhood of choice, the property, and the Airbnb market. The overall investment valuation score is based on:
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- Cash on Cash Return
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- Cap Rate
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- Property Design
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- Rent Appreciation Rate
- Neighborhood Rating
5. Share Property Info with an Expert
You can share the property report with a friend or a real estate agent, and he/she will get access to the full property report easily.
Make Sure It Makes Sense Financially for You
If the numbers don’t add up, do not close the deal. To help you make smarter investment decisions and find the best investment property for sale, keep note of the following benchmarks:
1. The 2% Rule
In a nutshell, your monthly rent should be (approximately) 2% of the original purchase price. For example, a $200,000 home should rent for $4,000 per month, and a $100,000 home should rent for $2,000 per month. This is an ideal case, but try to get closer to the 2% rule as much as you can.
2. The 50% Rule
50% of your rental income will be spent on expenses, excluding your mortgage payments. These expenses include: repairs, vacancies, utilities, taxes, insurance, property management, turnover costs, etc.
3. The 70% Rule
This rule predominantly applies to house flippers. This rule simply states that you should only pay 70% of what the after repair value (ARV) is, minus the repair costs.
Other Ways to Find the Best Investment Property for Sale
1. You can find the best investment property for sale via Craigslist. Check it out, the site is easy to use and maneuver, and it won’t take you a long time to find properties in the area/neighborhood of choice.
2. Realtor.com is the National Association of Realtors’ official website. You can search through millions of property listings across the country. The website also allows you to find the best investment property for sale by typing a street address or a zip code, and it will provide you with an overall valuation of homes in the area of choice.
Conclusion
To find the best investment property for sale is no easy task, but with the right persistence and determination, you can succeed and establish yourself in the real estate business in due time.
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