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!

[Brandon Sturgill]

@Nicholas Dennis I'm going to assume that by "market" you mean MLS listed properties?...markets are relative and misunderstood...and you can create your own. To think macro in RE investing is a fools game. It sounds like you need to move to more creative acquisition strategies like sourcing "off-market" deals or considering distressed assets. The road is long, but if you're serious, start to build your off-market expertise and source deals.

That said, I am a firm believer that there is value in listed properties, you just need to find it...sometimes it surfaces as long days on market, or non-conforming properties, and functional obsolescence.