The US housing market offers a lot of opportunities to real estate investors. Regardless of the strategy that you are planning on implementing, finding a real estate market that can accommodate your needs is relatively easy. Having said that, securing a high return real estate investment requires you to have a clear idea of what to look for. So how exactly can you find high return real estate in the US? In this article, we will detail the process of finding income properties that can yield good returns and introduce you to the tools that will help you identify the best places to invest in real estate and the top properties located there.
What Constitutes High Return Real Estate?
As you can surely guess, high return real estate refers to investments that can yield significant profits for investors. The best high return real estate investments will typically generate high rental income and allow you to recoup your initial investment fairly quickly.
The first step to finding high return real estate is to pinpoint a good location. So how should you go about identifying a high return real estate market? To answer that question, here are some of the effective approaches that you should consider exploring:
- Look for growing markets: The quickest way to ensure a high return real estate investment is to identify a growing market. In fact, these areas enable real estate investors to ride the growth wave and profit from the fast expansion of the tenant pool. Moreover, these areas will often experience a steady increase in home values, which is ideal if you want to implement a strategy that relies on both rental income and appreciation.
- Find areas with low vacancy rates: Buying cash flow properties in a real estate market that boasts low vacancy rates is a reliable approach to generating good returns. As you would expect, low vacancy rates translate into consistent rental income which is exactly what you need if you want to generate a high rate of return on a rental property.
- Real estate investment software: Leveraging specialized real estate investment tools is by far the most effective method of finding high return real estate investments. The advanced technologies that these software solutions employ take the guesswork out of the process and save you both time and effort.
The next section will focus on the aforementioned real estate investment software solutions. Keep reading as we go over the tools that will help you find high return real estate in the US.
1- The Real Estate Heatmap
The first tool you need to check out is the real estate heatmap. This Mashvisor software solution combines traditional and Airbnb analytics with a set of visual cues that enable real estate investors to pinpoint high return real estate markets on a map. In fact, the heatmap allows you to sort areas based on several crucial property data. Thanks to this feature, you will be able to quickly zero-in on areas that have high cash on cash return/ high cap rate.
The great thing about the heatmap is that it is very easy to use. Moreover, the map is well laid out and the use of color-coding makes assessing each area’s performance an intuitive process. Whether you are looking to invest in an Airbnb or in a traditional rental property, using the heatmap is the first step towards generating a good return on real estate investment.
Related: Heatmap Analysis: The Secret to Successful Real Estate Investing
2- The Rental Property Finder
After getting an idea of where high return real estate is located, the next step is finding high cap rate properties for sale. Mashvisor delivers once again with what it is easily the best property search tool on the market today. The rental property finder employs the latest in terms of AI technology and machine learning algorithms. This ensures highly accurate results that are in line with the investor’s needs and objectives. Like all Mashvisor tools, the rental property finder is equipped with a set of filters that provide you with a customizable search experience. Here are the main parameters that you can use when you are looking for high return real estate:
- The investment budget
- The location of the property
- The type of investment property
- Your rental strategy
- The number of bedrooms and bathrooms
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
3- The Investment Property Calculator
The tools that Mashvisor puts at your disposal do more than just identify high return investment properties for sale. In fact, you can even carry out an in-depth investment property analysis after picking a few potential real estate investments. This is, of course, possible through the Mashvisor investment property calculator, which also doubles as an Airbnb ROI calculator. This advanced tool helps you determine a myriad of important property metrics. Needless to say, this is essential for weeding out low potential properties and identifying high return real estate. Here is what the Mashvisor investment property calculator can do for real estate investors:
- Estimate a property’s rental income
- Assess the projected expenses of operating a rental property
- Calculate the return on investment that you can expect from an income property
- Determine the occupancy rate
By using the investment property calculator, you will be able to compare different properties in a matter of seconds. This makes finding high return real estate a convenient and quick process. More importantly, Mashvisor provides this data for both Airbnb and traditional rentals. So regardless of which strategy you choose, the calculator has your needs covered.
Related: Investment Property Calculator for the Best Real Estate Investments
Start Your Search for High Return Real Estate Today
Thanks to the tools that you have at your disposal, finding high return real estate in the US housing market has never been easier. As long as you take the time to explore various markets and analyze all the relevant data, you are guaranteed to generate a profit in the housing market.
Start out your 7-day free trial with Mashvisor now and be sure to check out our investment blog to learn more about how you can make money in real estate.