One of the best real estate investment strategies to ensure a constant cash flow is buying a real estate property to rent out. But to be successful, a real estate investor must evaluate the performance of the rental property investment and to understand the income property in details. Thus, a real estate investing tool which provides investors with the numbers and calculations necessary to evaluate a rental property is a must. And this real estate investing tool is the rental property calculator.
A rental property calculator, also known as an investment property calculator, is an online application which provides real estate investors with basic financial analysis, thus eliminating the need to conduct both real estate market analysis and investment property analysis manually or through spreadsheets. Real estate investors need to find a rental property calculator to determine the profitability of a rental property which they consider buying and to calculate the monthly and annual cash flow. The main advantage of a rental property calculator is efficiency as it helps investors save a lot of time and work.
So, the question becomes: “How can a real estate investor find a rental property calculator to buy the most profitable investment properties?” Well, the answer is easy: “At Mashvisor!” Mashvisor’s rental property calculator is the real estate investing tool to provide you with all the numbers and calculations necessary to make your investment decisions.
Related: Where can you find a rental property calculator?
What Does a Rental Property Calculator Provide?
A real estate property is one of the best investments there are, and the rental property calculator is designed to let investors make the best investments in real estate by examining the potential return on investment from income properties. When you find a rental property calculator, you will get all of the following:
- Cash Invested: Your investment property calculator will provide you with the cash invested, which is the money you actually put down on the investment property.
- Interest Rate: An advanced rental property calculator will also offer various options for the type of mortgage a real estate investor takes to buy an investment property and the various interest rates associated with each type.
- Land Value: Real estate properties are built on land, which costs a lot of money, so it is important to take into consideration the value of the land. This information is usually found in the tax records in the county where the property is located.
- Total Depreciation: Property depreciation is important in real estate investing as it is tax deductible. Total depreciation is the amount you can depreciate on the property each year.
- Total Annual Operating Expenses: Owning and operating a rental property costs money, and if you find a rental property calculator, it will provide you with an estimate of this number readily. The total annual operating expenses include property tax, property insurance, repairs, management fees, utilities, supplies, and others, so they are quite complicated to calculate.
- Cash Flow Before Tax and Annual Debt Service: This is the amount of money left after all rental expenses, principle payments, and interest.
- Investment Appreciation and Total Return: These include the annual percent of real estate appreciation and the total return on investment from the income property.
Related: Think Like A Rental Property Calculator: Numbers You Need To Know
What Does Mashvisor’s Rental Property Calculator Calculate?
Mashvisor’s rental property calculator, which also works as an Airbnb calculator, provides real estate investors with even more. To begin with, this real estate investing tool supplies neighborhood-based and property-based data through neighborhood analysis and investment property analysis. At the neighborhood level, Mashvisor provides investors with all the numbers and calculations needed for making the smartest real estate investing decisions related to neighborhoods in hundreds of US cities and towns. Thus, the rental property calculator helps investors decide whether a certain neighborhood is good for investment or not. Moreover, Mashvisor’s rental property calculator shows the optimal property type, the optimal number of bedrooms, and the optimal rental strategy. This means that this online tool helps real estate investors choose the best investment strategy for each particular neighborhood. Moreover, you will get tips on the most profitable property in each neighborhood.
At the property level, Mashvisor’s rental property calculator supplies estimates of all expenses associated with owning and renting out an income property. In addition to monthly and annual expenses as well as one-time start-up costs, the investment property calculator will also provide real estate investors with the monthly rental income, the cash flow, and various return on investment metrics such as cash on cash return and cap rate. If this is not enough, you will also be facilitated in choosing the optimal rental strategy for each investment property as all data is disaggregated into traditional and Airbnb data.
To get immediate access to the best rental property calculator there is, sign up for Mashvisor now.
What Are the Advantages of Finding a Rental Property Calculator?
When you find a rental property calculator, especially a good one, you get access to many advantages. These include:
- Convenience: Calculating expenses, rental income, and profitability can be a real headache for real estate investors using the traditional method of spreadsheets. Using an investment property calculator saves lots of time and efforts, so it adds a lot of convenience to the life of a real estate investor.
- Accuracy: When doing calculations by hand, there is always the risk of making a mistake. To make things worse, there is the risk of multiplying this mistake when using spreadsheets. The good news is that a rental property calculator is way more accurate as it does not make silly mistakes. Moreover, Mashvisor’s rental property calculator uses traditional and predictive analytics as well as comparative and historical data, which makes the estimations very accurate.
- Help in Making Good Investment Decisions: A rental property calculator will help real estate investors forecast the return on investment from their next rental property purchase and the potential for profit. Thus, it helps them make the best real estate investing decisions.
Related: Why You Should Consult a Rental Property Calculator First
To conclude, be a smart and successful real estate investor. Don’t waste your time on manual calculations to come up with your projected cash flow and return on investment. When you find a rental property calculator, it will provide you with the analysis and accuracy needed to make the best real estate investing decisions. Remember, Mashvisor’s rental property calculator in specific can help you throughout the process of buying an investment property and renting it out.
So, make sure to sign up for Mashvisor now.