One of the most important parts of becoming a wealthy investor is ensuring you achieve a good ROI in real estate. Whether you are an aspiring landlord or a seasoned real estate investor, having the right real estate investment tools is key to your success. The easiest way to get started on the path to success is by purchasing a real estate investment calculator.
Before real estate investment technology, investors were stuck spending hours searching for real estate data and rental comps. The worst part? Using spreadsheets to make sense of it all. If you’ve been in the industry for a while, maybe you use Excel to manually sort data, and you want something faster, easier, and more accurate.
In this article, we are going to talk about the features of the best real estate investment calculator on the market, and reveal the #1 calculator for your needs.
Ready?
What Kind of Calculator Do I Need for Real Estate?
When shopping for a real estate investment calculator, you might be wondering what features to look for. It’s important to choose the calculator that not only offers all of the features you need but also has:
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- Interactive features, allowing you to customize your calculations for circumstances unique to you.
- Integration with other tools that can help you find properties for sale and search for the best neighborhoods to invest in.
So, as you shop, what are the things you should be looking for?
Let’s define the most important metrics a good rental property calculator will provide, as well as some additional features.
Related: How Can You Find a Rental Property Calculator for the Best Real Estate Investments?
Key Estimates & Data
A real estate investment property calculator should be able to provide key estimates such as:
- Occupancy rate
- Rental property expenses
- Rental income
- Real estate comps and rental comps
You need these numbers and data to accurately calculate crucial metrics that will help you determine the profitability of an investment property. A real estate investment calculator that uses predictive analytics to estimate these numbers for you is superior to one which asks you to input the numbers yourself.
Why? Because if you enter inaccurate estimates into a real estate investment calculator, you will get inaccurate results. This means you could end up buying an investment property that has no chances of success.
Cash Flow
Cash flow is the net income an investor makes, and it is an important metric to calculate. Basically, it’s the money coming in minus expenses. Naturally, you want this number to indicate a positive cash flow.
Having a real estate investment calculator that determines your cash flow is convenient. This is also another important reason why investors should seek calculators that predict expenses. Properly estimating expenses is critical to determining an accurate cash flow.
See also: How to Find Positive Cash Flow Properties
Cap Rate
Cap rate is calculated using the net operating income and the property value or price. It is excellent for calculating ROI as well as overall risk.
Though the cap rate is a highly important metric for real estate investors, many people struggle to make this calculation on their own. It is a little bit involved, and having a real estate investment calculator do it for you is ideal, especially if you want accurate results.
Cash on Cash Return
Cash on cash return is an important metric for understanding your return on investment based on the cash you put down, as opposed to the total property price. Essentially, cash on cash return takes your financing method into consideration.
This is where having a real estate investment calculator with interactive capabilities is beneficial. You can find out what your ROI would be based on different downpayment scenarios.
See also: What Is Cash on Cash Return?
ROI (Return on Investment)
To figure out the return on real estate investment effectively, you need real estate investment tools that provide metrics that focus on both the short term and long term. Most landlords buy a rental property for both short term and long term profits, so it’s important to make sure you are covered on both bases.
If cap rate and cash on cash return determine your immediate return on investment, you’ll also need a tool for forecasting ROI long term. Real estate investors should purchase property that will experience capital gains in the long run. For this, you will need a real estate investment calculator that uses predictive analytics to calculate your investment payback balance.
Airbnb Analytics
Not sure whether you want to invest in traditional or short term rental properties? Don’t decide just yet!
Instead, find a real estate investment calculator that provides both Airbnb data and traditional rental data. There are investment property calculators that have built-in Airbnb profitability calculators, and these are your best bet. With a calculator like this, you can find out which strategy will make you the most money when analyzing a particular property for sale.
The Best Real Estate Investment Calculator
Now that you know about the features you need in a real estate investment calculator, where can you find one that meets all of these criteria for a great price?
You don’t have to look far! Mashvisor’s rental property calculator has all of the features listed above and more:
This is just one section of Mashvisor’s real estate investment calculator. Sign up to see comps and more.
And with Mashvisor’s software, you don’t just get a calculator. You will be able to do all of the following and more:
- Search for the most profitable neighborhoods to buy a property with our real estate heatmap.
- Search for investment properties for sale that meet your personal criteria, including both on and off market properties.
- Get rental comps and conduct rental market analysis in minutes.
- Find the rate of return on a rental property, among other important metrics.
- Automatically determine the best rental strategy for a property.
Mashvisor’s real estate investment software makes real estate investing easy, giving investors all of the tools they need in one, simple platform. Instead of using multiple tools, using our software gives you access to everything you need to succeed as a real estate investor.
If you are looking for the best investment property calculator, click here to sign up for Mashvisor today and enjoy 15% off.