- Hey guys, what's going on? Seth here.
So, a few months ago I heard about
this website called Mashvidor.
Just a little bit ago I had a chance to
sort of give it a test run and get in there
and explore it and figure out what it can do
and how and why it might be helpful
to some of you out there.
So I just wanted to give you a tour
of the website as it currently works today,
but this'll just sort of give you
an idea for what it does and how it
may or may not be helpful to you
depending on what kind of a real estate investor you are.
So, when you first log into the site-
the membership plan I'm working with here is,
yeah, professional plan, which is
approximately 50 bucks a month.
And this site can do a number of different things.
The real purpose and the value behind this website
is it helps landlords and real estate investors
to very quickly identify some of the best glowing
opportunities in whatever market they're looking in.
It is hooked up to a lot of different data sources
and it brings in all of the publicly
listed properties on the MLS.
And it uses some really sophisticated algorithms,
I can't pretend to understand what's
going on behind the scenes but
essentially what it can do is
it can find comparable properties
and it can findfairly accurate numbers
for what each property can generate in monthly rent.
What the expenses are,
what the numbers look like for
comparable properties in the same neighborhood.
It does this for every publicly listed property
and it automatically runs these numbers
and shows you what the approximate
cash return can be and the CAP rate
for each property in two different scenarios.
Scenario one is if you use that
property as a traditional rental.
So, like if you just rent it out to a tenant
and they sign a twelve month lease with you,
that kinda thing.
And it an also show you what those numbers would look like
if you use the property asa short term rental
on a website like Airbnbn.
So I'm just gonna quickly show you an example
of how it works here in a Chicago market.
So as you can see this is like the initial
search page that you'll land on
when you log into your account.
And there's a few different things you can do.
First of all, you're gonna see this map
with all the properties that are listed.
And Chicago is a huge market obviously
and you can see there's tons of properties to choose from.
And what you can do is
you can say I wanna see only the properties
that have a cash on cash return
of say 10% or higher
or a CAP rate of whatever percent or higher.
And you can identify how much your budget is,
like how much money you have available to spend.
You can also tell the system whether
you're planning to buy the property cash
or whether you're planning to do a mortgage
and if you are gonna do a mortgage,
what the loan type is gonna be
and then this interest rate, I believe,
is pulled in from Zillow,
based on the area where you are working.
You can also specify the amount
you have to put down as a down payment.
And if the data's available,
you can even specify which neighborhoods
you're interested in.
And I don't think this information is in every market,
but if you're working in some of the bigger notable cities,
you should find a lot of this information there.
And there's even more filters beyond this,
but I'm not really gonna get into that.
But all this to say you can get fairly specific
about what your situation is and
what kinda things you're looking for.
And once you've specified that
and you're actually looking in the markets
that you're most interest in,
what I think is really cool is
you can go over here and sort all these properties
based on what you're most interest in.
So, for example, if you wanna see
the properties that have the best
cash on cash return as a traditional rental,
you can go ahead and click on this
and it will sort them starting
from the best to the worst,
while also keeping in mind
which filtering criteria you set up here.
And as you can see right here,
this one that shows up here at top,
this is telling us that there's a
cash on cash return of 29.75%
and then it doesn't tell us anything
about what it would be for an Airbnb
and I'm not sure why.
I've noticed that some markets
are missing data like this.
Maybe it's because there's not enough data available
to give you that determination,
I'm not entirely sure.
But 29.75%, that's amazing,
especially when things are hot and it's hard to find
good cash flowing deals on the market right now.
So, that's all great and fine but
how exactly do they come up with these numbers?
Like what leads them to believe it gonna be that
and how reliable is that?
Well, it' really easy to figure that out.
All you have to do is click on the property
and it will bring up a new window
and what it has here is like
a pretty detailed rental property calculator.
And you can start by saying whether
this is gonna be a cash deal or a mortgage deal
and automatically it's assuming
that you're gonna be buying this property
at it's full asking price,
but if you wanted to change that
you could put in a custom price here
and it would automatically change
all the numbers over there.
So keep in mind that's an option too,
you can also change what the down payment would be,
what type of loan it would be.
But anyway, let's just go back to the cash scenario
and see what this would look like.
So, right here we've got all these assumptions and
this is telling us what the system thinks
you're gonna be able to make in a rental income
from this particular property
and also what the monthly expense is gonna be
and what the cash flow would be,
what the occupancy rate is.
And then it shows you all these expenses down here.
This column over here on the left,
it's called one time startup costs,
this is basically like the cost
that you're probably gonna have to pay
at closing or shortly after closing,
but not recurring on an ongoing basis.
So, for example, when you do your inspection,
if there's anything you have to repair right off the bat,
any new furniture or appliances and closing costs,
those are things that happened once at closing,
but you don't have to keep paying for 'em.
And then over here on the right
you have the recurring expenses
that you're always gonna have to pay for.
I'm not sure how it does this,
but I actually ran a couple of my properties against this,
like I found very similar properties
in the same neighborhoods and I was kind of surprised,
the numbers were pretty accurate.
Like if I had to change the numbers at all
it was changing it by like a few dollars.
It wasn't like it was way off.
So I dunno if it's pulling this in
from comparable properties or if it has like
a direct line to a utility company
that somehow know what the utility
expense is gonna be and insurance expense.
I think this property management expense
is automatically calculated as 10% of
whatever the rental income is gonna be.
So if you do end up manually changing this
to say like 3500 or something like that,
make sure you come down here
and make sure that this is still accurate.
You can also put in all these other numbers.
And I would say again, in my experience
I found these numbers to be fairly accurate,
but no matter where you're getting this information from,
I think before you actually make an offer
and proceed with closing on a deal,
you should always be verifying this stuff manually.
Don't just assume this is right.
I think it's fairly accurate but still,
like you should cross check information
and be absolutely sure that it's correct
with your specific situation.
Say if you've got a different property manager
that's gonna be charging more or less,
or if you're using a more expensive insurance policy
or anything like that,
just make sure the numbers actually jive with reality,
for your specific situation.
And down here you can see
the annual and monthly projections
and how fast the property is going to pay off,
whether you're using it as
a traditional or an Airbnb.
Again, for some reason it's not
available on this property.
But generally you'll find that the Airbnb
numbers are much higher and much more profitable
but it also takes a lot more cost
and ongoing work to maintain that kind of property.
So, now when we go back to these numbers,
like where exactly does this 2944 number come from
and how accurate is that?
Well, as I'm told, the Mashvisors
actually currently working on an update to this
where they're going to be like
providing a lot more information
on where these assumptions come from,
just so you're not flying in the dark
and just blindly trusting their system.
But I will say, if you go over here
to this valuation analysis tab,
you can sorta get a better look
at the comparable listings in the area
and it will show you the actual address
that it thinks is a comparable listing
and then how similar it is to the
property that you're looking at.
And it also shows number of beds,
number of baths and how much
those properties are charging in rent.
So if you really wanna dig into these numbers
and figure out like how reliably accurate they are
you can do that cause they actually
show you where it's pulling it from.
It's kinda like a website like Rentometer or Rento-meter,
it's just that it kinda gives you more data
and more stuff that you can use
to be confident that the numbers are accurate.
And as you can see, it actually shows you
where those properties are on the map
so you can see how close they are
to the property that you're looking at.
And for insights here,
this thing I thought was potentially like helpful,
but in it's current state, as I'm recording this,
I think it sorta needs more work
to like actually show me a lot more information.
Hopefully they will continue to
build this out in the future.
Something else I wanna show you here.
If we go back to the main search page is,
let's say you're looking for an Airbnb rental property,
that's what you're tryna do
and you're trying to find properties
in a good area where there's a low supply and a high demand
and a high occupancy rates, things like that.
Mashvisor has this heat map where
you can click on this and let's say we wanna search
this map based on the Airbnb occupancy rate.
We can click on this and it will
actually show us a heat map where
the high occupancy rates are the green areas
and the low occupancy rates are the red areas,
and you can sorta see everything in between.
Based on this, I can kind of draw
some pretty safe conclusions that
if I buy a unit in this area of the city,
which is all green,
there is a fair chance I'm not gonna have
a difficult time keeping that thing occupied.
Whereas, if I were to do it in this red area,
that would be much more difficult
because for reasons that I don't entirely understand,
because I don't live in Chicago,
but for probably several reasons
there's not a lot of people who are
looking to rent Airbnbs in these areas.
Either because there aren't any availalbe
or because it's just not a very desirable place
to stay while you're in town for a little while
but, however, these green areas are.
You can also go ahead and click on this tab
if you wanna see a live feed from Airbnb
which shows all the properties that are
currently available to reserve on that website.
So you can just kinda get an idea
for what your competition would be
if you were to do that in this area.
You can also do the same thing with traditional rentals.
So you can see what other properties
are on the market out there.
It's just a really helpful system
that pulls in some information
and organizes it fairly well
if you're somebody who is looking
specifically for these kind of opportunities.
I'll show you some other examples here.
Let's say we're looking for a traditional
rental property with a high cash on cash return,
which areas have those?
Let's see what the heat map says.
So if that's what we're looking for
we can see this area over here that's green,
if we click on this, this is three neighborhoods
with 58 properties.
And it just automatically zooms in-
has 23 properties.
So let's click on that and now we can see this area
and start exploring each one of these one by one
and find the properties with the best cash on cash return.
And as you can see some of these aren't really that high,
like this one's got -0.97% based on
the assumed data inputs that the system is doing for us.
This one's looking a little bit better at 4.01,
not great, but better than negative.
This one's closer to 5%,
this one's at about 10%.
So that's pretty good.
If I wanted to click on this
I could explore that a little bit more.
And what I hope you're seeing from this
is that the system basically just
speeds up the search process a lot.
I can tell you like all this information that it provides,
like I think you could probably get it all on your own,
like you don't need this system
in order to find opportunities
and crunch the numbers and figure out
what is or isn't gonna be a good deal.
But I can tell ya, I've done all that stuff
for every rental I've even purchased to date
and it takes a ton on time,
like an obscene amount of time
evaluating properties that you're never gonna buy,
you're just tryna find the good deals from the bad deals
and this system just basically speeds up that process.
You can kind of weed out the junk properties
that you're never gonna buy anyway
and identify very quickly the ones
that are worth taking a closer look at.
And remember, like the numbers it's using here are
the actual listing prices of the properties.
You can still make an offer below the listing price,
which is only going to improve the numbers.
And also remember, it's also important that
before you get too far along
you are going through these and manually
verifying all the numbers and making sure
they're correct and accurate before you move forward.
But the value is this really very quickly
identifies the low hanging fruit
of the best properties that you're
probably gonna wanna take a look at
and then you can sort of just ignore
the ones that are a long shot
and never gonna worth it in the first place.
I think one of the weaknesses of this system,
in it's current state,
is that it really just helps you focus on
the properties that are publicly listed on MLS.
If you find a property that's off the market,
like it's not really gonna be in this system
and it's a little bit harder to run the numbers
and make it all work seamlessly
with all of their data they have there.
So it's not really intended for people
who are doing direct mail campaigns
and working with off market deals.
This is really geared towards investors
who are looking at the publicly listed properties
and using all of that data to
find the stuff that's already out there.
But if that sounds like you
and if that's something you're looking for,
I think this could be totally helpful
and from what I have found,
similar to a lot of other real estate
data services out there,
the data tends to be really really rich
in the densely populated areas.
So if you're looking in a market like
San Francisco or Chicago or New York
or Sand Diego or something like that,
you're probably gonna have a wealth
of information to work with
in terms of deciding and figuring out
what the CAP rates are and prices are and all that.
However, like if I'm looking in a market that's
much more sparsely populated like,
for example, a smaller town like Traverse City, Michigan,
which is not a big city at all.
And you could find that a lot of the data
is sort of not there that you need to work with.
So keep that in mind, that can happen.
You'll still see some data there,
it's not like you're gonna have nothing,
but it won't have all of the crucial details
you need to make the system work
the way it was designed to work.
Buy anyway, I just wanted to show this to you guys.
I thought it could be super helpful
if you're an investor who's looking for those opportunities
and you're trying to save yourself a ton of time,
I think this can be very effective at helping you do that.
That sounds like you, definitely check it out.
I'm gonna have a link to Mashvisor
beneath this video that is an affiliate link.
I do get a small commission if you sign up for that
and actually you might be interested to know,
if you do go through my affiliate link,
which is again Retipster.com/Mashvisor
and or if you use the promo code RETIP25
you'll get a 25% discount on your first quarterly payment
or your first annual payment,
if you decide to pay on a quarterly or annual basis.
So, if you want a nice discount on your first payment,
go ahead and use that link and
you'll be able to get that too.
One way or another, I hope that was helpful to ya.
If you're in the market for a new rental property
or if you're trying to find new markets
that have great opportunities, definitely check this out.
I think it could be helpful to ya.
So, thanks for watching, talk to you next time.