How to buy in an inflated market?

[Nicholas Dennis]

Hello, I am brand new to real estate investing. I’m looking to find a deal in Prescott AZ and surrounding areas. Our market is heavily inflated and properties are going for rates as high as $350 a sq ft, however rental properties are not reflecting that inflation. How do I find a good deal in a market like this and still be able to make the 1% rental margin? Is it ok to not make that margin? Should I wait for the market to level out? Also because of California’s unaffordable housing, people a flooding to our small town and developers and starting massive housing projects all over. Will that eventually cause the market to go down? Thanks!