Finding the most profitable real estate investments is easier than ever with an Airbnb profit calculator.

Seeing that we’re in a seller’s market, there isn’t a large inventory of investment properties on the market. With the surge of Airbnb’s popularity, a lot of real estate investors are now turning to short term rental investments. With the limited options out there, it could be quite difficult to find the right one. Hours and hours of time spent on research and spreadsheets just to find the most profitable properties. After all, when you make an investment in real estate, you want to be confident in it. We’re here to tell you there’s no need to waste your time when searching for Airbnb rental properties. You can find all the answers with one of the most important real estate investment tools- an Airbnb profit calculator.

Related: It’s a Seller’s Market But You Can Still Invest in Real Estate

Airbnb Profit Calculator- What is it?

If you’ve heard of an investment property calculator, you probably already have a good idea. It’s basically the same thing, just a tool that’s focused on short term rentals. An Airbnb profit calculator uses traditional and predictive real estate analytics to find the best real estate investments in the market. It’s a return on investment calculator for short term rentals, mainly Airbnb properties. Using past market trends, this digital real estate investment tool predicts future trends for the real estate market. The best real estate properties are chosen based on these carefully calculated real estate market trends.

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Where Can I Find One?

You know Mashvisor’s got you covered. We like to make the process of investing in real estate as simple a process as it can be. Our main focus is you, the investor. Our tools, our product, are targeted at finding the most innovative, time-saving, up-to-date, and accurate methods of collecting data. There might be other investment property calculators out there, but we can assure you, they won’t be as reliable as Mashvisor.

Find great real estate investment properties in a matter of minutes, instead of months. Leave behind the days of manual calculations and hours of inputting different numbers in spreadsheets. You wouldn’t need to spend hours and hours searching through listed real estate properties. With Mashvisor, just enter the location you’re interested in, and immediately, you’ll be given all the numbers.

Related: The Airbnb Profitability Calculator: The Best Friend of the Short-Term Rentals Investor

Airbnb Profit Calculator: What does it calculate?

Assuming you have all the relative investment property financing costs prepared, an Airbnb profit calculator can find the following:

Airbnb Cap Rate 

This is one of the most important metrics to look at before making a real estate investment. It gives the real estate investor an idea of the property’s return on investment by comparing annual income with the property price (market value).

Airbnb Cash on Cash Return 

Also a very important metric. Here the return on investment a property makes is determined based on two different things: The cash invested vs. the cash made.

Cash Flow

Positive cash flow is key in any income property. The Airbnb profit calculator deducts the rental expenses from the rental income to give you the cash flow of the investment property.

Airbnb Rental Income 

The calculator can give you an idea of the expected rental income to be generated by this investment property. This information is vital for positive cash flow.

Airbnb Occupancy Rate

Let’s say a certain property has a great cap rate, cash on cash return, and positive cash flow. As an Airbnb host, you’d want to maintain a high occupancy rate because it affects all these numbers. Occupancy rates refer to how many Airbnb guests a property is holding when renting out on Airbnb. If it’s low, that means you’re not renting out to many people, so you’re not generating enough rental income. This could lead to a bad cap rate, bad cash on cash return, and a negative cash flow. We don’t want this, so make sure to use an Airbnb profit calculator before purchasing.

Note: An Airbnb profit calculator can find all the above mentioned for specific investment properties. It can also find the cap rate, cash on cash return, Airbnb rental income, and occupancy rate for a location. The metrics of a location could be very handy when comparing properties.

For more information on Airbnb real estate investing, read: Four Things to Consider Before Purchasing an Airbnb Investment Property

Airbnb Profit Calculator: How can you make money with it?

Making money is primarily the goal when making any investment. The same applies to real estate investments. Like we said, we want to help you through every step of the process. This also includes the cashing-in step. We wouldn’t recommend a tool unless it was able to help you fulfill your main goal. So, how exactly can our Airbnb profit calculator help you make money?

Time is money

We all know how valuable time is in the real estate market. One day you’re looking at a great potential investment, the next, it’s gone. Maybe today the location you’re interested in has a great cash on cash return, but by the time you actually make the investment, it’s turned bad. You can’t waste this valuable time by constantly researching and investigating. By using the Airbnb profit calculator, you can instantly receive all the necessary information for today, and find future market trends. Instead of losing money on months of researching, you’re making money by saving your time.

Mashvisor’s Airbnb profit calculator isn’t a one-use tool

It can be used for any type of investment you want! That means both traditional rentals and Airbnb rentals, both short term rentals and long term rentals. Most of the other calculators would only be useful for short term rentals, which makes it very inconvenient for the real estate investor. You wouldn’t have to use a different tool for a different type of property with us.

Optimal Rental Strategy

In addition to finding the best real estate investments in the best locations, you can find the optimal rental strategy. Even with their vast popularity, not all locations are great for Airbnb rentals. Make sure you’re investing your money following the right strategy in the right location.

If you still need some more convincing on the greatness of this real estate investing tool and others, check out the following blogs:

Airbnb Profit Calculator: The Ultimate Real Estate Investment Tool6 Must-Have Real Estate Investment Tools

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