How Data Makes Real Estate Investors Rich: A Mini Guide

screen-shot-2017-01-17-at-10-56-34-am

What is the data?

Such data is predictive analytics. This is data that uses past trends and algorithms to predict future outcomes or trends. This helps a person or a business to make a decision based on intelligent data and gives them comfort by having an idea of what to expect as a result of their decision.

A real estate investor is familiar with studying past trends before purchasing an income property. They will look at the fluctuation of housing prices, appreciation rates, rental rates, and the habits of people in the area. Since more people in the U.S. are tapping into real estate investing, it only makes sense that there should be a way to automate the research process.

Mashvisor aims to help real estate investors 1) understand a market without having to live in the area 2) get the projections needed to make a decision 3) find an income property quickly without having to perform complex research or analysis. Use this mini guide to understand what you can gain from this tool and how to use the information.

What does predictive data tell a real estate investor?

How good a market is for investing

Not all investors stay in their area when buying a property. Some investors choose to invest outside of their local area to seek more affordable homes or better returns. The challenge with this strategy is understanding the investment performance and potential of a market and without having to spend months worth of research to do so.

If someone searches for a city on Mashvisor, they can click on a neighborhood and get a summary of the neighborhood’s performance: the average rental income, cash on cash return, overall investment score, and the optimal strategy for that area. In certain areas, vacation rentals are more lucrative than traditional rental properties. Should an investor choose to turn the property into a vacation or short-term rental, the Airbnb occupancy rate is also shown in the area’s summary.

How much money other investors are making

Rental comps, or similar properties, is a major part of the research done prior to buying an income property. It’s also one of the more challenging pieces of information to find.

When looking at the overview of an area, investors can also look at other existing properties. The “traditional” tab has properties that are rented out on a long-term basis. Each property has the monthly rent and number of bedrooms and bathrooms. The “Airbnb” tab has a property’s nightly rate, estimated monthly income, and estimated Airbnb occupancy rate.

How much money they could be making

Finally, the data tells real estate investors how much money they would make from a property. But with each investor having a unique situation, that’s where the rental property calculator comes in handy.

Whether the investor is financing the property using cash or a mortgage, they can set the calculator based on their financing preferences, and from there, get the estimated rental income, cash on cash return, and cap rate that they would receive from a particular property. The calculator is interactive, which means they can put in their own numbers and other expenses they might have, such as a gardener.

How does this data help them get rich?

Points them to the money-making areas

Ok, so the data doesn’t give the winning lottery ticket numbers. But, it certainly puts an investor in the driver’s seat. By knowing how areas performed in the past, they know how the potential property would most likely perform, which gives them the ability to select top areas and properties.

Let’s take an example. Austin, Texas is well-known hot-spot for real estate investing. But you’re not from Austin nor have you ever lived in Austin, so where do you go? That’s why you count on the numbers. The neighborhood that has your budget and the highest returns will likely put you in a profitable area.

The data also has the calculations needed, whether or not the investor was aware of such numbers before. The average rent might be easy to find, but that doesn’t tell the cap rate or cash on cash return, which are important metrics to know.

Tells them the competition

Rental comps should be used for insight but also for knowing the local competition. While there might be plenty of renters, know what other properties are making and what kind of properties they are.

This is especially important for those with short-term rentals. If a property is listed on Airbnb, it’s up against a lot of competition. But the data can help compete. How? 1) View the listing on Mashvisor to get their  estimated income and Airbnb occupancy rate. 2) See the listing on Airbnb. 3) Read the reviews and look at the pictures. Doing these three steps helps gain a perception of what a property has to do and look like to get that much income and bookings.

Shows what property to pick and what strategy to use

An investor can spend months just trying to pick a property, even if they know the area like the back of their hand. But all investors have the same goal, make money. So by viewing the potential investment properties and their projections, it should make narrowing down properties a lot easier. Go with the better returns.

Finally, the data opens up an investor’s eyes to other strategies. Not all investors would consider turning the property into a vacation rental, and knowing what strategy is best can be difficult. Sometimes Airbnb properties make much more than traditional. Hence, knowing the optimal strategy in the area could exponentially increase returns.

New Preconstruction Opportunity – Blu

Screen Shot 2017-01-13 at 2.36.46 PM.png

Be one of the very privileged few to call blu home. Okaloosa Island’s newest luxury condominium, offering forty-seven premier private residences overlooking three hundred feet of pristine, sugar-white sand beach.

For more information or to contact us (or fill out the form below), visit the website here

Rosemary Beach, FL

screen-shot-2017-01-13-at-1-31-53-pm

Here, neighbors share small talk from wide balconies and open patios; groups of young ones gather for games of tag on sprawling green lawns. Nearby restaurants are full of foodies trying out the chef’s latest seasonal dish; down the street, families sip hand-made sodas and milkshakes.

Rosemary Beach is full of charm that draws visitors back again and again — which is just one reason why this beach neighborhood was named by CNN as one of America’s most romantic small towns. Come visit Rosemary Beach and let this destination sweep you off your feet.

Search Rosemary Beach Real Estate for Sale here

Something BIG coming to VPS!

screen-shot-2017-01-10-at-5-10-30-pm

Allegiant and VPS will unveil the largest single expansion into Florida in the company’s history today. Find out the new 11 cities.

While there is far more to this story coming today at nwfdailynews.com, Destin-Fort Walton Beach Airport (VPS) and Allegiant are holding a major announcement on expansion of service. By adding 11 cities to the nonstop service out of VPS, Allegiant is preparing to unveil the largest single expansion into Florida in the company’s history.

Readers can follow the announcement and expanded coverage at 9:30 a.m. from VPS. The Daily News will be streaming the event live on its Facebook page at THIS LINK. Also follow more live coverage on Twitter using the hashtag #VPSBigNews.

As an early look at the major event this morning, Allegiant will introduce the new routes with fares as low as $42*.

1. Kansas City, Mo. – begins May 3, 2017 with fares as low as $49*

2. Austin, Texas – begins May 4, 2017 with fares as low as $56*

3. Cleveland – begins May 12, 2017 with fares as low as $42*

4. Louisville, Ky. – begins May 24, 2017 with fares as low as $65*

5. Peoria, Illinois – begins May 24, 2017 with fares as low as $69*

6. Columbus, Ohio – begins May 25, 2017 with fares as low as $65*

7. Springfield, Mo. – begins May 25, 2017 with fares as low as $59*

8. Indianapolis – begins May 26, 2017 with fares as low as $56*

9. Pittsburgh – begins May 31, 2017 with fares as low as $42*

10. Washington D.C. / Baltimore – begins May 31, 2017 with fares as low as $59*

11. Newark, N.J. – begins June 6, 2017 with fares as low as $49*

Flight days and times can be found at Allegiant.com.

“We are pleased to bring more convenient, low-cost travel options to more communities,” said Allegiant Chief Operating Officer, Jude Bricker. “Our partnerships with Emerald Coast Convention and Visitors Bureau and Visit Florida will only strengthen the success of these new routes, and the desire to escape to this sunny, beach oasis on Florida’s Emerald Coast.”

Allegiant offers a unique option to travelers with low base fares and savings on rental cars, hotels and activity and attraction tickets. Travelers can book their entire vacation with Allegiant for less.

“Allegiant has absolutely changed our horizon and commitment to VPS, Okaloosa County, the Northwest Region and the State of Florida. The economic impacts of a new base and 11 new nonstop flights will bring tremendous growth and direct connections our area has never seen. We are thrilled and look forward to a very successful 2017,” said Tracy Stage, A.A.E. Airports Director, Okaloosa County Airports.

*About the introductory one-way fares

Seats are limited. Price includes taxes and fees. Fares are one way and not available on all flights. Flights must be purchased by Jan. 13, 2017 for travel by Aug. 15, 2017. Price displayed reflects purchase by debit card; purchase by credit card subject to surcharge not to exceed $8 each way per passenger. See Allegiant.com for details. For optional services and baggage fees, please visit Allegiant.com. Additional restrictions may apply.

 

4 Reasons to Buy Your Dream Home This Winter

screen-shot-2017-01-10-at-1-34-58-pm

As the temperature in many areas of the country starts to cool down, you might think that the housing market will do the same. This couldn’t be further from the truth! Here are 4 reasons you should consider buying your dream home this winter instead of waiting for spring!

1. Prices Will Continue to Rise

CoreLogic’s latest Home Price Index reports that home prices have appreciated by 6.3% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 5.2% over the next year.

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates are Projected to Increase

Your monthly housing cost is as much related to the price you pay for your home as it is to the mortgage interest rate you secure.

Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage are currently at 4.08%. The Mortgage Bankers Association, Fannie Mae, Freddie Mac & the National Association of Realtors are in unison, projecting that rates will increase by this time next year.

An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.

3. Either Way You’re Paying a Mortgage

There are some renters who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage – either yours or your landlord’s.

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.

Are you ready to put your housing cost to work for you?

4. It’s Time to Move on with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.

But what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe now is the time to buy.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.