How to Select the Right Real Estate Investing Software

Real estate investment software is typically used by agents, investors, appraisers, and other analysts looking to determine the cash flow, rates of return, and profitability of rental income properties. The idea is simple: How can I arrive at the bottom line of an income property so that I can decide if the investment is worth the risk or not?

What they want, of course, is a software solution that includes all the crucial calculations and professional-quality reports needed for investors to make smart investment decisions with concise, uncomplicated data; otherwise, they would spend the time to create their own spreadsheet; who understand that it is not profitable. They would rather spend their time creating deals than creating software. That seems fine to me.

So what are professional kidney property analysts looking for in real estate investing software?

1. The inclusion of crucial cash flow data. The most important concern for those engaged in real estate investing is the cash flow produced by the property. Is it enough to cover operating expenses and the mortgage payment? Will I have to feed the property out of my personal budget, or will I be able to pocket some of the cash flow and invest it elsewhere in some other investment?

2. The inclusion of crucial rates of return. How does my investment in this property compare to the rate of return I could receive compared to other rental properties I could invest in or perhaps other investments I may make? Do the returns meet my investment strategy?

3. The inclusion of tax shelter calculations. Most serious investors are very interested in knowing what impact their rental property investment (if any) will have on their taxes. What will my tax liability or profit be for owning this income property? What will my cash flow and rates of return be after depreciation, mortgage interest, and other taxes? What can I expect to receive in income once the property is sold?

4. Clear and concise reports. All data must be complete and presented in a way that is easily understood by the most novice and inexperienced reader. Otherwise, the reader will be lost trying to find heads or tails with the data. The reader should be able to dissect the various cash flows, rates of return, and tax elements effortlessly.

5. Easy to use. It’s hard enough to make a rental property deal, so the last thing analysts want to struggle with is real estate investing software. In this case, they want easy-to-use forms where they simply enter data, and then they can trust the software to perform the calculations and create the reports automatically.

6. Affordability. This, of course, is relative to the personal budget of each one. But it’s safe to say that all of the above goals can be met with some real estate investment software solutions priced under $300; which to some may seem like a huge investment for the software, but you have to ask yourself this question: Are you willing to spend about 300 hours (maybe more) trying to develop your own software application? If your intention is to make money selling rental properties, then I don’t think so.

Here is the end result.

Agents, individual investors, and everyone else involved in real estate investing wants a tool that helps them make money from rental income property. They don’t want to build it or have to think about it, they simply want an affordable real estate investment software solution that can crunch all the numbers necessary to accurately determine a property’s potential return within the reports they are confident and proud to present. .