Tips for Identifying Markets?

[David Cunningham]

Hi, I've been analyzing deals in my area (Hutto, TX) for a while. I feel like I have a good pulse on the local market, but am curious if anyone has tips for identifying markets.

I feel like my area is a good buy-and-hold market as the city is actively growing and the houses are appreciating considerably. The house my wife and I purchased last year now has comps at $100k higher than our purchase price. 

We are planning on doing the "sneaky rental" in July by doing a cash-out refi and put that cash down on the next home while renting out the one we are currently living in.