Yes there are some very hot markets.

It is at a peak in some cases and areas.Investors typically buy just a few that are still deals in the hot markets and then either change asset classes more at the bottom to buy or wait until the markets go down and gobble up a bunch then.You never just buy to buy in a market people say "can't lose".  

The next step would be to work with the Realtor and determine the hot markets, in your County, with the greatest number of sales over the last 90 to 120 days.

You make your money on the purchase - not on the sale or on the "cash flow".There are opportunities to make money in certain "hot" markets on occasion like Denver and Austin, but on the whole, the majority of your money is going to be made from the purchase price of the house when you bought it.  

It is a hot market, but I think there are still locations where it makes sense to invest.

IMHO, the cold hard reality of Raleigh/Durham and the immediate surrounding suburbs is that it's very much a hot sellers market and my guess is that prices are at or rapidly approaching the top of the current market cycle.

The market:  Omaha has been in a total seller's market for the last couple of years, and this past winter, in which the cold weather typically slows sales down until spring, it remained hot, setting up for a crazy spring.  

Its a hot buyers market here.

You can put TV ads out there, radio, hot air balloons.

Sounds like most of you think it is worth the investment.The house is 3500 sqft, in a very hot city.