We're in a hot rental area and it's really hard to find any rentals.  

Where I live is super hot also and there is very little chances of getting cash flow which is why I decided to invest out of state also as of about a year and a half ago.  

We recently sold the house to cash in on the hot housing market in our area, with the plan to invest the income in to a new house to renovate as well as a small multi-family.

What makes a market a hot market and how do you spot that before it happens.

If they keep monthly dues arbitrarily low and not building reserves it usually signals that the HOA is going to special assess every needed repair to common area i.e. siding, roofs, paint etc.Also determine whether they pay water as that can get extremely expensive if hot water is included as many HOA's in large buildings. 

Note to America's builders: less-expensive homes are starting to move. Purchases of new homes climbed 7.8 percent from the previous month to a seasonally adjusted 539,000 annualized pace in February, a seven-year high...

If it is just standard water heaters and hvac those aren't even that big.My suggestion.Network better with people and negotiate like a boss to get better deals on the installation of HVAC and hot water tanks.

To "LLC" or not is a hot topic for debate here on BP.

The market seems to REALLY get hot between the May-August months.

Your in a hot market right now...Any questions you have PM me ill gladly share any thing ive learned, from marketing tactics, talking sellers etc...Good Luck