Ok, I'm buying my first home. It's not really for investing but it's more for living.

But the question is, five years or so from now, I plan on selling the house and want the house to appreciate as much as it can.

Are there any general tips on where to buy a house for maximum ROI?

For example, the house I'm looking at buying is right next to a good school district (highschool) and walking distance (5-6 blocks) to a golf course. It's also right by the highway. Is this a good location? I know nothings guaranteed in the real estate but is there a way to minimize the risk of a house depreciating?

When you investors purchase a house what do you look for? Any tips?

Buying a home and buying a house for investment are really two totally different things for most investors. You buy a home where you want to be. Everyone anticipates it will appreciate but many more emotional factors come into play in the purchase of a home.

On the other hand, buying a house is where most investors become very analytical and evaluate a property based on their investment goals... Cash Flow, Appreciation, Below Market Acquisition Cost, Capital preservation, Repair Requirements and their own capabilities/ desires and personal preferences.

You can pull historical sales data for an area to see how much appreciation has occured... if you keep up on current events as you should... you will have a better understanding on what is proposed / planed for the area in the near and longer term. These will effect the future value of the properties in the area. What is occurring in adjacent area, with the rental occupancy rate is and how the rental rates compare to equivalent mortgage payments, number of foreclosures, new building both residential and commercial and any industrial activity. Their hundreds of "clues" as to what is going to happen with property values. Investors select what they feel is important and review those factors, they will change by location and current events.

So buy a home where you want to live, but investment properties require far more detail evaluation by most investors.

As realty check stated, there is a big difference when shopping for a home you want to live in and when shopping for investment property. Often times, you'll find some of the best investments in the worst areas.

For example: Housing prices in Los Angeles are still near an all time high. It is close to impossible to find income property there that is profitable without putting tons of money down. On the other hand, in economically hard hit areas like Buffalo, NY, you can get investment property for nothing - many of which are HIGHLY profitable.

Good luck with your search!