The challenging part about buying investment property has for many years been how to determine which investment properties will help you achieve your specific goals.
For many, spreadsheets were used to determine which real estate investments would be lucrative. However, we now have several modern real estate investment tools which anyone can use to perform real estate investment analysis in order to find the best rental properties.
These tools can transform what would have been months of research into a matter of minutes. With these tools, it is possible for anyone to succeed in real estate investing even if you are a beginner real estate investor and don’t know how to buy rental property.
The real estate investment tools you use will depend on your investment strategy. In this blog, we are going to go through the tools you will need when buying Airbnb property. Buying Airbnb property has rapidly become one of the most popular ways of making money in real estate.
Many people are now buying investment properties to use them as short-term rentals. However, the success of real estate investing begins with finding the best rental property no matter how you rent it out.
To find profitable Airbnb properties, you will need up-to-date Airbnb rental data. So, which tools should Airbnb investors use when analyzing investment properties?
Here are three important Airbnb tools that you will need when buying Airbnb property.
Related: Four Things to Consider Before Purchasing an Airbnb Investment Property
1. Heatmap Analysis Tool
Location is very critical in real estate investing. The first step when buying Airbnb property will be to find locations with a high return on investment. To find the most profitable areas in a city when buying Airbnb property, you will need to use a heatmap analysis tool.
A heatmap is simply a visual illustration of numerical data using different colors to show different ranges in value. Heatmap analysis is the most straight forward way to locate money-making areas in a real estate market. It is two-dimensional and user-friendly.
Mashvisor’s heatmap analysis tool is excellent at helping you choose the right neighborhood for buying Airbnb property. It offers a number of important metrics such as the listing price, Airbnb cash on cash return, Airbnb rental income, and Airbnb occupancy rate.
All of these real estate metrics are important in finding the most profitable Airbnb locations in the market. Low-value areas are usually marked in red, the high-value areas are marked in green, while the middle-value areas are marked in orange and yellow.
Mashvisor’s Heatmap Analysis Tool
In essence, using a heatmap analysis tool like Mashvisor’s helps you conduct neighborhood analysis, which is an important process in finding income properties that have a high return on investment. Try it out right now.
Related: Airbnb Rentals: Finding Income Properties Using a Heatmap
2. Property Finder Tool
A property finder is also another important tool to use when buying Airbnb property. It is an online real estate investment tool used to find investment properties on the basis of the user’s search criteria and preferences. It is a dream tool for beginner real estate investors who want to find rental properties easily and quickly.
For example, an investor might want a particular type of property in a specific city. Using the property finder tool, the investor can easily use filters to set his/her preferences. The property finder tool will quickly provide them with a list of rental properties matching their criteria.
Not every property finder tool you find online will be the same. Most will typically use the type of Airbnb rental data that their platform or website has. Based on that data, they can provide listings.
Mashvisor’s property finder tool is quite exceptional for anyone buying Airbnb property. It uses a wide range of analytics, metrics, and data comps to provide property investors with comprehensive lists of investment properties with the highest returns.
Related: Rental Property Finder: A Revolutionary Tool for Investing in Real Estate
3. Airbnb Profit Calculator
Another real estate investment tool to use when buying Airbnb property is the Airbnb profit calculator. When it comes to finding the most profitable short-term rentals, this tool is the answer.
The Airbnb profit calculator is a digital tool that uses traditional and predictive analytics to find the best Airbnb investment properties across a real estate market. It is similar to an investment property calculator but focused on short-term rentals. It uses past trends in the housing market and property data to predict future trends.
Just like with the other online tools, not all Airbnb profit calculators are the same. Mashvisor’s Airbnb profit calculator is one of the best in the market. It makes the process of finding an Airbnb rental property simple, accurate, and less time-consuming. The real estate investor will only need to search for a specific location, check out the numbers presented regarding an income property, and invest.
The calculator calculates a number of important real estate metrics which are useful when comparing investment properties. These metrics include the cash flow, the capitalization rate (cap rate), Airbnb rental income, and Airbnb occupancy rate.
With this tool, you can determine the amount of cash flow you will make. A property investor can enter the rental expenses and mortgaging to see the ROI. Be sure to always use Mashvisor’s Airbnb profit calculator when buying Airbnb property.
The Bottom Line
Investing in short-term rentals has become quite popular since Airbnb was founded. However, to ensure that you find the best possible Airbnb properties with high returns, you will need more than just the knowledge you have. There are many real estate investment tools available to help you make sound real estate investment decisions.
For those looking to get into Airbnb real estate investing, Mashvisor has readily available Airbnb analytics to help you out.
With the use of Mashvisor’s Airbnb tools like the Airbnb profit calculator, property finder tool, and the heat map analysis tool, you can find the most profitable Airbnb properties in the market quickly and accurately. To make the best real estate investment decisions, you can combine the power of all these real estate tools.