Well, to get started I am going to put a team together which consists of a Real Estate agent/Investor in my area who really knows the hotspots in my area.

University City seems to be a hot spot near where I live in Graduate Hospital.  

Use this formula and DO NOT DEVIATE... unless you wanna go broke.Purchase at 65% of ARV minus rehab and holding costs.Look at what the "hot spot" of target price ranges are of the houses in your market.

Cities are hot spots for social life.

Quote from @Kit Elliott: Quote from @Ethan Hanes: Kit, it is very very common to do STR’s in the Bay area especially.California is an appreciation hotspot.

@Lisa TalbotYou might want to follow the "Deep Dive" series we're doing on our BiggerPockets blog about Metro Detroit cities, City of Detroit Neighborhoods and comparing Metro Detroit to other hotspots investors usually consider: https://www.biggerpockets.com/member-blogs/3094/99854-deep-dive-into-metro-detroit-cities-ecorse(BP search feature can be problematic, so we’ve also added links @ our website under View Cities & Neighborhoods We Service)Doubt you'll find this much info for any other market in the country.

I also demonstrated how we could have money available from our investments to supplement our retirement savings and have excess money for travel, she then got even more excited (these were hot spots for her, as her parents both retired with no savings and she never traveled as a child).  

What are some good hot spots without regulations in the US? 

I took the leap because the price was right, the area is undergoing a renaissance (and this block isn't that bad to start with) and I happen to know that the city is going to focus its community block grant funds on the seedy neighborhood between me and a local arts hotspot this year.One small example of it being more difficult: the proximity of the 5 buildings complicates the tenant selection process.

I make way more money by purchasing a dollar for 75 cents wherever that deal is and making sure it cash flows as opposed to guessing the hot spot that appreciates 12% next year vs 8% average (as an example).