When evaluating markets for rental properties, there are a lot of factors to consider: population growth, employment rates, rent to price ratio/GRM/Cap Rate, rent trends, vacancy rates, etc. 

I'd really vet the developer, their past projects, talk to prior partners (GP & LP) to see how prior development deals worked out and how the communication was, etc.

Gross Margin is an important calculation for developers/builders.Gross Margin = Gross Profit / RevenueWe shoot for a 20% gross margin on our New Construction HomesReal #’s:Home Sales Price: $374KClosing Cost: $18,700Cost of Construction: $258KLand Cost: $30KGross Profit = $67K$67K/$374K = 17.9% Gross MarginCame slightly short of our goal of 20%Homes Values and Build Costs are constantly fluctuatingI wish we had a crystal ball

The investors that i work with look to theses growing markets of population and jobs to make an investment that both cash flows and will find appreciation.  

Tagged as a developer, surely, you'd want there to be more development projects.

Experienced developers, could you tell me how the process/financing works?

Quote from @Morgan Tondre: Quote from @Wale Lawal: @Josue RamosTo invest in Texas markets, consider Dallas, Austin, and Houston, which have seen strong population growth and appreciation.

, You are targeting the entire population to try to FIND that minuscule amount.The difference is... with all these other strategies you are targeting HUGE audiences in hopes you get that minuscule amount of motivated selelrs... while me?

When I purchased my property, I had read all the exciting developments in the works...indoor waterpark, shops, new hotels, restaurants, etc., but was severely disappointed when I went recently with my family. 

we need our own forum for this concept. I'd argue that there are very select zip codes where this strategy works. You need to find a zip code where land values are 10% of less of after built value. You have to find a ...