Make sure there is more than one established industry that is creating jobs and be wary of areas that rely heavily on industries that are volatile by nature and cycle through booms and busts regularly.

How much volatility are you comfortable with?

These have historically more similar to bonds than real estate (and produced higher returns with less volatility than bonds).

Their advice will not cost you any money.The Houston market is pretty volatile right now....I suspect you can find some good deals at present.

I believe stock market has much more volatility compared to real estate.

This is harder to predict in the volatile rate environment.

Do you want to put forth the money to furnish, enjoy a higher, but more volatile income?

Not vacant land volatility!

I see things remaining the same but there will be a spike in volatility once everyone has a meltdown near the end of the year when we "fall off the fiscal cliff".

If you read more of the BiggerPockets forums you will find that in places like Florida and other highly volatile areas, betting on appreciation is more like gambling.If it is a long term buy and hold and you can sustain the annual negative cashflow, then it makes sense.