Analyzing for aggression vs. patience

[Dori Arazi]

(As a preface, I'm rather new to REI on the larger scale).
I am based in California and am looking at the Nashville market for rental investments. I have a local team which I spent quite some time with and feel like a trusting report is there. As much as one can be, considering I have yet to close a deal there. 

Like everywhere, the market is drying up in Nashville and is getting very competitive. Properties are staring to go for above asking. Even at above asking the cash flow is looking good, but I worry about killing the equity upside. How do you guys determine that point where you should lean back in your chair and wait for a correction before diving back in?

[Ali Boone]

Are you sure there's cash flow at above asking price in Nashville? Can you give some sample numbers and where you're finding that?

Nashville really isn't "starting" to get competitive or going for above asking...that's been going on there a while. It's an extremely popular market--not for investing but for living and overall desirability--and cash flow has been drying up there for quite some time. I went to school there and my investment partner lives there and has bought a lot there and even he's stopped buying because of where the market is.