If your property cash flows (i.e. you are cashflow positive with a decent cushion), you've already solved almost all the problems that sink real estate investors.

It's fairly easy to know when the market has gone too far up or down by taking a look at real estate history for the area, and comparing markets then and now.  Note: when investment properties must increase in value for you to "break even," we are likely entering the bubble phase. It's true, you can always offer a larger down payment or pay cash--and sometimes this may make sense (certain areas of San Diego County are always desirable), but do be careful if you must pay "all cash" for a 3% return--that's what was happening in the last real estate run-up.  When things like that occur, it's better to wait, unless you can acquire a truly prime property and make it work (in other words, make the cash flow positive).

There can be excellent value in buying condos, but they require more careful investigation--examples: the solvency / management of the condo association, litigation, and the like.  We will help you with this.

The safest investments are typically:

• a little below or at the market 'price-point' (the point at which most transactions are done)
• in a region that is not  permanently distressed
• properties that can be rented a little under the market with positive cash flow yield with low leverage after taking into account the following factors: maintenance, property taxes, personal taxes, management costs