If you have enough knowledge financing in real estate, you can make money almost everywhere, but there are always places that are better or worse for real estate investments. For maximum profits, you want places that have a good demand ratio. Here are questions that every investor should ask to help find the best locations to buy investment property.

Job Growth

Does the area have decent job growth? Ask local authorities & use census info. Preferably, you want to see job growth equal to or exceeding population growth. You also want areas with professional jobs moving in. It is likely that for every professional job created, there are 4 service jobs created, & all those employees need a place to live.

Population Growth

Is the population growing? You can check the US Census data online, or ask the local government if they have the figures. Stay away from areas that have small growth.

Local Wealth

Is there wealth in the area? It’s a good sign when there is some degree of wealth in a town. Look for nice homes. Wealth means everything doesn’t die when the economy slows.

Quality of Life

Is there a decent quality of life? It is subjective but significant. Are there theaters & bookstores? Count coffee shops & cafes? Popular areas usually have an increasing demand for housing. It’s also a good sign of a high quality-of-life if people are willing to take lower paying jobs just to live there.

Number of Homes

How many homes are for sale? Lower supply of homes for sale means rising pressure on prices. This indirectly drives up rents as well, which makes for good investing.

New Construction

Is there new construction in the area? Census figures can tell you what happened over the last ten years. Check with the local authorities to see if the number of housing units they’ve issued permits for is more or less than the estimated population growth.

Rent & Vacancy Levels

What are the local rent and vacancy levels? Rents have to be high enough, and vacancies low enough to justify investing.

Buildable Land

What is the amount of available land that is buildable? Obviously, the less available land is better for future appreciation. When the land runs out, the prices start accelerating upwards.

Conclusion:
When you use these questions to compare various towns and cities, you’ll see the differences more clearly. You’ll have an idea on how housing demand compares to supply in each. This will help you find the best investment real estate locations.