There are absolutely areas where margins are tightening, such as super desirable spots in East Nashville.

Made an all cash fast close offer on the spot and was accepted same night!  

He recently moved to Tulum, Mexico and while walking around town one day "scouting" for properties, he spotted an empty lot that he thinks has a lot of potential.

I know there are some people who are pretty confident in their abilities to spot a deal and close on it without an inspection, but that's definitely outside of my expertise!

I'm thinking if I walk through enough houses I'll be able to spot a good deal when I am ready, I'll know a good agent when I find one etc etc.Thoughts on this thinking?

The advice you have received already is spot on.

@Matthew Paul You hit it spot on.

I am pretty sure the builder had a 1-year warranty on most “house stuff” and 10-year warranty on the foundation.I have a few small wet spots on ceiling.

. :-(  ..however I am glad I was able to spot a good deal sifting through many possibilities.

William, You need to do the full math, as @Peter M. mentioned and did for you, the percent rules are just for quick analysis like he said. the percentage will analysis people usually use to help tell them if they want to run the numbers further on the property because it fits a certain % criteria. that's OK but does not fit every situation, what if you know the area is an up and coming hot spot and even if the % number is off - because the incoming rent is below market and you know that they will be going up - then the percentage rule will tell you to walk away and you would miss out on a property that a full analysis from the beginning would tell you to jump on that property because you would know that the rents were below market and that they are going up. forget the percent rules, learn the area you want to invest in, you will learn what the area does, the rent it gets and how much would be a good amount to purchase for based on the amount of rent you can collect for that property.