2017 ended up being a very good year for housing markets across the country. Some of the key takeaways from the prior year included seeing an increase in property values, lower rates of foreclosure, and higher rental rates for investment property owners. In 2018, there are many different factors that could influence how the housing market and investment properties will perform.

There are some who predict a slowdown when it comes to the real estate market. However, the hottest markets are certainly still going strong. Many predict that the western United States will actually see growth, despite other areas seeing decreases in sales. So, if you're planning on investing in a home, California is as safe a bet as you can get.

Searching for a home used to consist of driving around certain areas you have enjoyed or communicating directly with real estate agents and having them decide which homes best fits your needs. Today, you have multiple resources available to you that will leave the power for deciding in your hands, as you sift through the various properties available on the internet.

According to California resident expert Ray Calnan, Assistant professor of Real Estate and Business Law at Cal State Northridge, on the website, WalletHub.com, when contemplating flipping a house:

As an experienced real estate investor, you understand the value of understanding your buyers. Without a firm grasp on their preferences, you're basically operating in the dark, which can lead to a lack of sales and stagnation in your investment portfolio. When considering California real estate, there are a wide variety of factors to consider, some not so obvious. One example of this involves attics and basements. More specifically, how important is having a finished attic or basement to California buyers? This may seem trivial or not applicable to the California real estate market, but it could be the deciding factor in a buyer choosing your property over someone else's, so it's important we examine this detail.

The question that every small balance real estate (SBRE) investor should ask themselves on every property they purchase is: How can I maximize my return on investment? There are several areas that you can make a small financial investment in your property and maximize your returns upon sale. The MLS is full of examples of the do’s and don’ts when marketing a property for sale. These suggestions have helped me add value to my investment real estate for next to nothing out of pocket.

If you want to see what's hot on the market, it pays to look at what's happening on college campuses. Only last week, the results of the U.S. Department of Energy Solar Decathlon were published. The contest centered on sustainable home building, and one of the competitors was based right here in Southern California. Team Orange County focused their project on the specific challenges in the Southern California real estate market, and their design points out several home features that California investors love.

A statistic published by the National Association of Realtors (NAR) confirms the fact that the available existing housing market is not booming. In fact, the market was losing momentum as 2014 closed. Cash sales, mainly investors, only comprised 25% of the total sales in November. This was down 27% from October. The median housing price was near $200,000 and climbing. Investors were watching for a cost decline that could drive down prices on their existing properties. It didn't materialize. At a minimum that prevented immediate losses to existing holdings.

Real estate investment is an exciting field, with many opportunities to gain a hefty profit. However, as with all transactions, there are many risks involved. Careful consideration of all details will help you make profitable investments and avoid making potentially disastrous decisions. In particular, take note of the 5 most common mistakes real estate investors make: