Look not only at what is happening in an area, but also how long it's been happening. The announcement of major new land allocations to green space, for example, can be a good thing - but buying several years after the fact could be a purchase into a market about to change.
One of my students bought a nice three-bedroom brick home in a good rental area. Based on his research and knowledge of the area, he purchased the home with 100 percent financing and rented it for a $100 per month positive net cash flow (after paying mortgage, taxes, and insurance).
He bought this home because he could see that the path of commercial development was headed right through the area where it is located. And he plans on holding onto it until commercial development drives up the property's value and he can apply for rezoning to office/commercial and either sell or lease it.
He knows that he will need to hold onto this property for four to five years to maximize his profits, but since he bought it with 100 percent financing and the place actually makes him money every month, he is in no rush.
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