I think the right question is "where's it trending?".

In addition to the property itself, you want to look at the larger trends in the area.

I think the drop is sales was predictable with the new school year starting and people focusing on the end of their summer, but I am interested to see how the avg home prices trend over the next few months with the price drops happening across the city.

If your strategy is long term buy and hold, you want to be in markets that not only cash flow well today, but have strong economic and demographic trends that will maximize both income and equity over the long haul.

While this will take several more months to show if there is a trend, this may be the initial start of a cooling multi-family market.Taking a look at MLS sold properties, about half of these are reported under conventional financing with a quarter of properties sold still under FHA over the last 3 months.

Flipping has a lot of different facets you want to be sharp on - especially in a downward trending market like this.1) Where is the deal coming from?

In times of lower interest rates that accelerates and times of higher rates that decelerates (although still a positive trend).

To answer your question...I study market cycles as well as historical trends. 

Specifically in terms of choosing investment locations, you'll want to consider demand drivers like: major employers/employment opportunities; population growth trends; demographics; safety and school ratings; proximity to major transportation; and more.

These are the average trend of a particular type of Townhome.