You’ve decided that you can get more out of an investor property if you build your own from the ground up. You found the plans that suit your needs and your bank is ready to finance your new construction but what you haven’t decided is where to build your next property. You literally build anywheresearching for the right area there’s space but what factors do you need to consider regarding location?

After all, isn’t that what all the real estate agents say are the three most important words? Location? Here are a few things to keep in mind when you’re shopping for lots.

Both buyers and those who rent want the ideal location but location can address several issues. Renters who have school aged children want to move to a good public school system. If you’re building a three bedroom home by putting in an area with a highly regarded school system you’ll discover the property will demand not just higher rents but rarely will you have a vacancy. Both buyers and renters have good schools on their list.

A proximity to major employers or at least easy access to thoroughfares taking the commuter to work is a valuable feature. That is of course if your tenant is working. There are communities that are far removed from major employers for a reason—they no longer work and a commute isn’t important to them because they’re retired or soon will be. Overall however, commuting distance is a concern for most who rent.

Is the lot big enough to build what you want to build? There may be areas where you’d consider building a new rental but the lot size or shape simply doesn’t match up. If you do find an area that has adjoining lots you can fix the small lot problem by removing the boundary lines and making one big lot.

When building new you should ask the very same questions if you were a buyer or renter. Primarily, “Why do I want to live here and what are my priorities?” Answer that question and your search for real estate will become easier.