Buy low, and sell high. We all know that successful investors follow this advice. The problem with applying this idea to Real Estate (or any other asset) is that it is difficult to tell when we have hit bottom. Have home prices hit bottom in my area? I don't know for sure, but here's what I do know... Rental homes are in extremely high demand, and vacancy is at an all time low. Prices are the best I've seen in years.
I have several rental homes in Johnson County, KS. When I post them for rent on craigslist, the response is incredible! I usually get more than 5 applications in the first week. My annual return on investment is a solid, stable, 10%.