Melissa Kubala works as a realtor in Houston, TX and has personal experience in flipping properties. As an experienced real estate professional, Melissa understands the importance of location when buying and selling properties. In the following article, Melissa Kubala discusses how to identify a good location for a strong investment in real estate.

One of the only predictable things about real estate is its unpredictability.

The other? The longstanding mantra “location, location, location” still rings true.

Despite economic highs and lows and shifting tastes, one of the best predictors of a successful real estate investment is the exact location of the investment, often broken down by U.S. regions. Sometimes it even comes down to the community or street.

Melissa Kubala of Houston, TX says that whether it’s investing in an apartment or a single-family home, or if it’s a big flip or part of a pool of investors, here’s how to pinpoint the best location for a lucrative opportunity.

Melissa Kubala on the Qualities of a Smart Investment

Individual real estate markets tend to wax and wane year to year — even the hottest markets can cool down quickly. But there are a few key qualities to consider when looking for a solid real estate investment.

Good Schools and Public Amenities

For a family with young children, proximity to quality schools usually tops a real estate wish list. It’s particularly important for people relocating to an area that are unfamiliar with. Some cities have good reputations overall for public and private school options, but sometimes it comes down to neighborhoods as well.

Melissa Kubala of Houston, TX explains that buyers are drawn to additional public amenities as well, especially if an area offers easy access to reliable public transportation (especially if colleges are close by), an abundance of parks and recreational options, and an array of dining and shopping options.

Safety and Economic Stability

Melissa Kubala, Realtor notes that it pays to pay attention to the crime rates from city to city and neighborhood by neighborhood compared to population; it’s a very strong factor in whether an investment will be a success or not. Compare specific crimes as well, especially property crimes.

Another researchable factor is how economically stable an area is based on unemployment rates and the overall stability of the economy.

Melissa Kubala, Realtor says that a strong indicator of an area’s financial stability is whether real estate values have steadily grown and if rental rates are consistently high despite low vacancies.

Homeowners and property managers alike should always invest in the best security regardless of area stats however. Upgrades like adding a Multi Lock deadbolt are always worth it.

Other Economic Factors

Several economic factors play a part in whether a real estate investment reaches its full profit potential. An area’s population growth is important is a long-term investment in an area is a goal.

Melissa Kubala, Realtor says to look for cities or neighborhoods where there is new public and private construction and places that are attracting new industries and the jobs that come with them.

Whether an area is a tourist-heavy location or not is a safer bet for investors, whether it’s in apartments, condos, or home-share properties.

Be careful, though. Some markets are only hot for limited times during the year, such as a beach condo or a mountain home. Also, such properties tend to come with higher initial investments.

Unexpected Areas to Consider Right Now

Melissa Kubala explains that it’s one thing to take an educated approach to real estate investing, but on the other hand, it takes a certain level of aggressiveness to score a great find.

Translation: Get in on the ground floor when a market is getting hot. Real estate investors are reporting big successes in the following trendy areas that are showing job growth, infrastructure investment, strong rental markets, and affordable housing options.

Boise City, Idaho

Melissa Kubala explains that gross rental yield (GRY) isn’t the only way to make cash. While GRY is comparatively low in Boise City (a little over 4%), real estate in the area has appreciated rapidly in both the past year (just over 29%) and over the past five years (an eye-opening 97.4% jump).

Waco, Texas

Waco’s population is around 274,000 — not exactly Texas-sized — but the median price of a home is around 27% lower than the average for a U.S. metro area, making Waco steadily attractive to families relocating.

Greenville, North Carolina

Much of North Carolina, including Raleigh and Charlotte, is experiencing an economic boom — and a rise in population and housing demand. Greenville, in the Eastern part of the state, is reaping rewards as well.

Melissa Kubala notes that the Eastern Carolina University college town is seeing rental prices as high as most of the United States and a 9% GRY that puts it in the top 20% of America. It also helps that it’s close to several popular beaches.