Dodd Frank and predatory buying regs could get you in hot water.

This means a roof that does not leak, hot water available, heat and air conditioning, and good plumbing / electric.  

. - Let's say I want to, for example, choose a market that is hot like Boulder.

Within 9 months of ownership we have already replaced the roof, hot water heater, remodeled the entire living room due to a cockroach infestation inside of the walls.

We sell turn keys in Indianapolis and Kansas City which are 2 very hot markets right now.

I'll spray the perimeter and if need be the inside but I'll also tell the tenant that this is the south and if it's hot and dry it's not unusual to see these critters coming in to seek water.  

What are your thoughts on whether (or to what extent) I should be concerned about buying when the market is hot?

Especially the days when you discover that big capex like a roof being blow off (happened 2 years ago), some tweakers climbed up on the roof and gutted the A/C (did two of those in the last 12 months), an evap cooler leaked for so long that the drywall on the ceiling of the kids bedroom caved in (last year), the hot water heater blew a hose and a major leak went unnoticed for 10 hours flooding the hall, kitchen and living room (dealing with that now), the tenant smelled gas outside, the gas company came and shut off the gas because the underground pipe is corroded AND also discovered that the water heater is not venting properly so it got red tagged (just dealt with that last month) or the time the tenant "invited" a homeless guy over, he moved in, then called his other homeless buddy up and he parked his crappy RV with his entire family living in it in the driveway.

In a very hot market like mine there are truck loads of realtors looking at EVERYTHING that hits the market.

The market here in Lexington is really hot right now and deals are hard to find, but they can be found.