How can you tell if the real estate market is too hot to enter?

[Eric Chiu]

Hi There!

I am a new BP member, but had been an avid listener since last year. I have a couple of buy and hold properties in Las Vegas and wanted to add one more in my portfolio. In my research this question had been lingering in my mind for quite sometime, since Las Vegas home prices and other popular metropolitan area had been steadily going up. I want to seek some help as to what kind of metric or data to look for to find out if the market price is way over priced for buy and hold investment.  

Also, if I am generating positive cash flow and I'm not seeking for much appreciation should I even need to consider this question. 

Thanks in advance,

Eric