Finding the best investment rental property for sale should be the main focus of every real estate investor. In fact, buying a rental property that can generate positive cash flow is what will allow you to succeed in the US housing market. Zeroing-in on the ideal rental properties can be achieved through a wide range of methods, the most effective of which is using specialized real estate investment tools. So what exactly are these tools? And how to find investment properties for sale using them? This article will introduce you to some of the most effective property search tools on the market and show you how to find rental investment property for sale in 2020
Finding Rental Investment Property for Sale with Mashvisor’s Tools
When it comes to helping you identify good investments in the housing market, few real estate websites can match Mashvisor. The platform puts at your disposal a wide array of tools that will assist you throughout the process of real estate investing. This includes everything from home search to investment property analysis. Let’s go over these tools and explore how they can help you find rental investment property for sale in 2020.
The Heatmap Analysis Tool
The real estate heatmap is one of the most unique features of the Mashvisor platform. As the name suggests, this is a tool that helps real estate investors identify rental investment property for sale on a map. More specifically, it enables them to narrow the search down to the most profitable neighborhoods. Here are some of the metrics that investors can use when conducting an investment real estate search using the heatmap.
1- Listing price
This filter is essential when you’re buying an investment property on a budget. The heatmap helps you stay within your budget by allowing you to filter areas that are optimally priced for you. Furthermore, you can carry out a comparative analysis to find out which neighborhoods have more affordable investment properties in a matter of minutes.
After setting the filter, check out the listing price range of the city of your choice at the bottom of the map and see where your budget falls. For the cheapest neighborhoods, look for areas highlighted in red. If you have a larger budget, then search for investment properties in the areas highlighted in green.
2- Rental income
Rental income is probably the most basic metric you can start with. This filter will give you a complete idea of where the ideal cash flow investments are located. Set the filter and start searching in areas highlighted in green. Moreover, you can specify the type of rental income you’re interested in- Airbnb or traditional.
3- Cash on cash return
This return on investment (ROI) metric is extremely important when you are trying to find rental investment property for sale. In fact, it helps you assess the profitability of each income property by estimating the returns you can expect on your cash investment. Finding income properties that boast high cash on cash return is one of the simplest ways to ensure a profit in real estate. Again, for this filter, you will want to search in areas that are highlighted in green. These will have investment properties for sale with the highest CoC return in that real estate market.
The Rental Property Finder
When it comes to property search tools for investors, the rental property finder stands out as a particularly effective option. Combining the latest AI technology with a set of simple filters, the property finder can connect real estate investors to the rental investment properties that meet their criteria with a click of a button. Let’s check out the main features of this real estate investment tool.
1- The filters
The property finder filters fall into two categories: mandatory and optional. The mandatory filters include essential data inputs such as location, radius, and budget. As for the optional ones, you can filter listings with criteria as diverse as rental strategy, property type, and the number of bedrooms/bathrooms.
2- The AI
The AI technology that the rental property finder employs is highly advanced and takes into consideration a host of factors. In fact, Mashvisor’s AI relies on the latest machine learning algorithms when finding rental investment property for sale. These algorithms factor in a number of personalized patterns which allow them to yield highly accurate results.
Once you set the above-mentioned filters, the tool will show you the investment properties for sale with the highest return on investment in the city (or cities) of your choice.
The Investment Property Calculator
Identifying a set of investment properties that boast good earning potential is only half the process. To make sure that you are buying the perfect investment rental property, you still need to carry out a thorough profitability analysis. Conveniently, you can do so right here on Mashvisor thanks to the investment property calculator. Here is what this tool helps you calculate.
1- The cash flow
In simple terms, cash flow is the amount of money you’re left with after covering expenses. Naturally, the goal of every real estate investor is to find a rental investment property for sale that can generate positive cash flow. The Mashvisor investment property calculator helps you achieve this by providing you with each listing’s cash flow figures using reliable estimates for rental income based on rental comps as well as expense estimates based on neighborhood data. You can also adjust any of these figures as the tool is interactive.
2- The cap rate
Determining the capitalization rate is an integral part of investment property analysis. This is an important metric that assesses the risk and performance of a real estate investment by looking at the property’s net income relative to its purchase price. Calculating the cap rate enables the investor to easily identify a high performing rental investment property for sale.
3- The cash on cash return
The investment property calculator allows you to input your mortgage information- down payment, loan amount, loan type, interest rate, and loan term. From there, it will show you the cash on cash return you can expect from the investment property based on your method of financing. This will help you, not only find the best real estate investment but also ensure that you are using the best financing option.
Other Features of the Investment Property Calculator
Besides calculating basic performance metrics, the investment property calculator offers you several extra features. Here is a couple of them.
- The Mashmeter: This feature lets you know whether or not a particular area is suited for real estate investing. To get the most accurate results possible, the Mashmeter relies on a combination of qualitative and quantitative data.
- Optimal rental strategy: The investment property calculator goes a step further than just helping you find income property for sale. In fact, the tool helps you maximize your returns by recommending the rental strategy that will bring the highest return on investment for that specific property.
The Bottom Line
If you are still asking yourself “how do I find the best investment property?” or “how can I find houses for sale near me for investment?” then you should look no further than Mashvisor. Whether you are looking for single family or multi family homes for sale, using Mashvisor’s tools is by far the most convenient way to find what you are looking for. Not only are these tools effective when it comes to finding rental investment property for sale, but they are also just as useful when assessing profitability.
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