Willoughby the Dog is an old 1940’s cartoon character, but the voice of Tex Avery playing Willoughby is familiar to lots of people.
Maybe your name isn’t George, but the question may still very much relate to you as a real estate investor.
“Which way should I go?”
In the past, real estate investing was much simpler. Most successful real estate investors bought property within 30 minutes of where they lived. They knew their market well. The logistics of buying property out of state seemed like a losing proposition.
Today is a completely different deal. The internet and technology have given some investors the ability to purchase or wholesale properties across the country.
Add to the mix a new way of renting. The website AirBnB is turning many traditional landlords into vacation-rental owners. For some areas, AirBnB makes total sense. For others, there might be too much competition. Or it might not make sense for other reasons. Or it might even be illegal.
Get to Know Any Area Like a Local
With all these variables, it seems like local is the way to go. Not anymore. Now there is a website called Mashvisor. The folks at Mashvisor understand real estate investors need data. It’s the data that investors use to determine if they have a good deal. They have consolidated the data nationwide.
Can’t you just get that data from a local Realtor? Perhaps. But Mashvisor puts all the data right on your computer screen. Many Raltors don’t have this kind of data. And Realtors let you do your own due diligence. Mashvisor sends you reports with the due diligence already done.
One of the reports Mashvisor provides tells you about the area. The reports cover both traditional and vacation (AirBnB) rentals. You simply put in the area you are interested in. Mashvisor then breaks down the surrounding areas by a score showing the most potential income return. The score is called the ‘Mashmeter.’
From the first screen, click on an area you like. Mashvisor then takes you to a list of properties that it has designated as potential profitable investments.
Select a property that looks interesting, and a due diligence report comes up. The first data you will see, other than a generic picture, is the numbers that show the best rental strategy.
Based on data from the surrounding area, Mashvisor can let you know whether the property makes more sense as a traditional or vacation rental. They even provide simple calculators like a mortgage calculator to add those in for expenses.
Scrolling down on the property report will give you lots of other valuable information. You can toggle back between AirBnB and a traditional rental to determine what kind of rental you want.
For both types of rentals, Mashvisor will give you similar properties in the area that will be your competition. It will show the number of beds and number of baths the property has, along with the monthly (or daily for AirBnB) rate the property charges. For the AirBnB rentals, you can click on the property address to see the listing on the AirBnB website. Below the list of properties, there is also a map of the property locations.
For AirBnB properties, there is a lot of extra information:
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An occupancy graph going back 10 months to see what kind of seasonal demand there is
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Property types (apartments, single-family homes, condos, etc.)
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How many reviews each property is receiving on AirBnB
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Cost and revenue assumptions
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A monthly spreadsheet with a breakdown of the potential numbers
Obviously, nobody should invest in real estate based on the data from one source. But Mashvisor sure makes the data easy to organize, review and verify.
You can also see data about the neighborhood. Mashvisor lets you know whether the property is in a low, medium or high rental availability market. To make the most cash flow from either a traditional or AirBnB rental, the trick is to find the market with low rental availability. Mashvisor will tell you right away if you have found one.
Once you have located a neighborhood with low rental availability, you might want to see what attractions the neighborhood has. Mashvisor can also give you this information.
Not only does this information give you a good idea of why the area might have a high demand, it also gives you good information when you do your own advertising.
In addition to these services, there are city investment guides available for different cities, which include a legal overview of what the city will allow for AirBnB rentals. Part of your due diligence should always be to make sure you are complying with the city ordinances and laws.
Wondering what the bottom line is here? Mashvisor can give you that too…
For a given area, Mashvisor combines all the data it collects to determine which types of properties and which kind of rentals provides the strongest return. Then they show it in a simple format. You can take that information and look for a specific type of property.
What’s the Cost of this Due Diligence?
You can start by signing up for a 15-day free trial. If you like the service, it is only $29.99 per month. If you need more data, there is ‘Expert Investor’ level pricing. You’ll have to contact Mashvisor directly to determine how they can match their plans to your needs.
There is no obligation and you can cancel at any time. Mashvisor also has an option to purchase a one-day subscription for $9.99. If you have narrowed down where you’re looking, the one-day service may be right for you.
Data is becoming more and more important across all businesses. Real estate investors, in particular, can profit handsomely if they have the right data. Mashvisor does a great job of consolidating all that data in one or two reports. If you’re interested in long-distance investing, or maybe just want to validate your local area, be sure to check out Mashvisor.
We’re Listening…
Do you have experience with Mashvisor? We want to hear about it in the comments section below.
Do Your Due Diligence – Make sure you know what you are getting into in your investments.
Use Multiple Sources – When collecting data for your investments, make sure you verify the data is correct. Cross check it to make sure.
Look at Multiple Properties – Mashvisor is a great way to see what is available. Review a bunch of properties in your area to get a feel for what your competition will look like.
JP Moses
is a real estate investor in Memphis, TN, with experience ranging from land lording to note buying, rehabbing, and wholesaling. However, wholesaling is the area that he enjoys most and where he bring the most experience and expertise to his students.