I summarize the under writing and business plan but I reccomend you read some books on the subject to gain a more in depth understanding which will go a long way in helping you build your portfolio in the future.I start my business plans with market data.You need to find out the following about your market/ sub marketAverge rentsAre rents trending up or downIs it cheaper to rent or own a home What is the median income in your marketWhat is the average occupancy What is average appreciation in your marketWhat are the laws that may apply to your rental investment in your area ie rent control, optional property tax increases.Once you know these thing you can get a good idea as to the supply and demand of rentals in you market and start to make educated assumptions about how yours will perform in the future.Next under writtingFirst understand real estate investment is primarily to things rolled into the same investment firstly an asset( the physical building and the land it sits on) and the business in the building (the tenent/s, cashflow, expenses, and managment.)Not all business make money, and not all investment are winners it's you job to make your business/investment make money.

.)- Median Rents by Number of Bedrooms- Unemployment Rate- Employment Sectors Percentages- Number of Building Permits Issued- Foreclosure Rate- School Ratings- Crime Statistics Also take into consideration the direction in which each of these market indicators are trending.

The value of your new construction is stagnant at best for the next 2-3 years and probably 5+ years given the current trend in Denver real estate.

A home in a desirable area of Nashville should continue to appreciate, if current trends continue.

@Darrick Richardson agree with @cameron tope about direct mailing (and you will need a large budget) ... recent trend is cold calling .

So I came in contact with a guy in the DFW Metroplex one of the hottest neighborhoods in Tarrant county right now. the ARV is 200K although he said his appraised for 215k looking at numbers and recent comps I determined the low-end 200k which im going with.

I am in SE Idaho, but BOISE is one of the hottest re markets in the nation.

I am going to discuss a Duplex I own in the Creston Neighborhood of Grand Rapids, 49505 - Recently rated the HOTTEST ZIP Code in America to buy real estate in! 

Anything over 6 months indicates a Buyer's market (aka slow, properties are not selling, sellers are dropping prices), anything under 6 months (180 days) indicates a Seller's market (aka a hot market, more demand than supply, prices go up, multiple offers etc).A local broker should be able to provide you with DOM for your market and a complete break down by price segement (hint: luxury price segemnt is often slower) and also changes over time, so you can see a trend.

Or was that just a local trend at a specific time?