How do you find the hidden gems?

[Shane W.]

What's the best way to find small hidden gems?

Or on a bigger scale, the next town to boom?

[Scott G]

Artists, gays, hipsters. 

That's the formula that most depressed urban areas follow.    Artists will first move into an area because they can find lots of space cheap and they don't seem to be as bothered by crime and other problems (see SoHo in the 60s and 70s).    Next gay people seem to follow because they can spot a good deal on the rise.   They tend to beautify the area by fixing up properties and maybe even opening businesses.    Then it seems like the hipster and the yuppies finally catch on and prices begin to skyrocket.

I'd say find out where really hip gay people in your area are rehabbing houses.    You'll probably be about 3-8 years away from a lot of dough.