In the recent past, the software defined radio (SDR) using Multiple-Input-Multiple-Output Orthogonal Frequency Division Multiplex (OFDM) is implemented to improve the data rate and channel estimation with high spectrum and maximum throughput for short range communication. The short range of communication is established to communicate the data between different nodes placed in the appropriate position using localization technique using SDR MIMO OFDM. The 256-M Array Quadrature Amplitude Modulation (256 M-Ary Quartrature Amplitude Modulation) is applied to SDR MIMO OFDM to reduce Modulation Error Rate (MER) for efficient transmission of data through SDR. The high data rate is achieved by applying the beam-forming equalization technique by applying beam-forming between transmitter and receiver of SDR. The Zero-forcing-beam-forming (ZFBF) equalizer is used in frequency domain to correlate transmitter and receiver to improve the spectrum efficiency better. The synchronization error is reduced in the transceiver of SDR by reducing Carrier Frequency Offset (CFO) mismatch and Sampling Time Offset (STO). The simulation results have proved that the proposed algorithm have better performance in data rate improvement with elimination of CFO mismatch problem to improve the spectrum efficiency and higher range of channel estimation.