I think in some areas (Los Angeles, Denver, Phoenix), the market is so hot that you can maybe make some mistakes as far as interpreting the market, but in most, it's very important to pay close attention to more than just the numbers.

He's also pretty hot on the hardwoods.

Does anyone have any tips on how to find prime "hot spots" around town or know any reliable ways to find foreclosed houses?

Texas had done very well during the market down turn and is hot as fire cracker now.  

Data that trends one way may mean future boom times (or a future all-Pro player) in one case, but a hot mess in another.I don't mean to poo-poo the discussion, I have strong opinions on the effects of quantitative easing, the willingness of banks to engage in certain types of lending such as mortgages, the regulations and backing of such lending, and data/examples that have led me to those conclusions and love to debate them with knowledgeable folks like here on BP!

I really liked how nice it was and I got to know the neighbors and they're really great too.Purchase price = $31,500Rehab = $6,000 (approximately)Work done:+ Painting all rooms in the house (needed primer to cover ugly colors) + ceilings and trim+ New rainfall tub/shower faucet + plumbing+ New ceramic tile tub surround and tile base around the room+ New toilet+ New glass block window in the bathroom+ New windows in the entire house (except for large picture window), double-pane vinyl windows with tinted UV protection+ Basement laundry tub plumbing repairs+ New water heater+ Drywall replacement in upper bedroom around stairwell+ New outlets and switches in all rooms+ New light fixtures in two rooms+ New kitchen floor (sheet vinyl) also used on back hall and stairs to basement+ Miscellaneous (some new cabinet handles, smoke detectors, CO2 detectors, door knobs, new locks, curtain rods, curtains, light bulbs, grass cutting and gutter cleaning)Rented out at $875/month + utilities.The tenant I have is actually one from one of my other rentals. 

I have put nearly $`13,000 in electrical  rewiring of both units, painting, new ceiling fans, and a new hot water boiler for the un-rented unit.

Right now the DMV is hot. 

I had a talk with my X CFO  this week about this very same thing.. she is now CFO at one of PDX bigger HML  they are about 50 million.. and they are cognizant and worried about how they will compete against the CF.I was instrumental in getting both of these crowd funders properly licensed in Oregon. which is a Red hot market for a lender ...

The house I grew up in wouldn't cool below 78 when it got really hot, really couldn't go more than 20 degrees below the exterior.