The west side is so hot right now, I am wondering if it is worth it to target elsewhere.

I management to find an off-market house, negotiate it below market value (in our hot market), and had it rented with $400/mo cash flow within 90 days of closing (old owners rented back for 6 weeks while they prepared to move out).  

However, I balked when I noticed that the "Neighborhood Grades" are at least partly based upon household income (e.g., "wealthiest people" and "middle class") and crime (e.g., "high" and "warzone"). 

That area is obviously a hot topic for a lot of beginner investors.

So there's a little bit of a speculative component in any "hot" market.

(I am open to anything better here)The tax sale: This property is in a hot market and properties are selling in a day.

Or maybe they just think it's a hot property and they don't want to waste time.Three days isn't much time to inspect and then negotiate unless you're well-qualified to complete the inspection on your own.

So that $5k might really be $6-7k monthly, depending on the person & household. 

The owner declined negotiating the inspection addendum and I have an out, but I think there is good long-term opportunity here according to my calcs - good cash flow + appreciation + stable rental market.To sum it up, my question is: in your opinion(s), when is it acceptable to purchase an investment property in a hot rental market at asking (or above). what would you compromise on with initial up-front cost (i.e. no rehab, appreciation prospects, etc.)?

@Gene Belaval  How hot (or cold) is the market in your area?