You you are buying a property for a real estate flip you always need to know your ARV - after repaired value.

When you are in a cold market and it takes longer to sell a property you obviously must buy cheaper.

The opposite may happen if you are in a hot market. I have seen investors pay more than the standard 70% formula because there were too many investors going after the property. This happens because appreciation rates are on the rise / prices are going higher and people are demanding to live there.

Yes this may happen. You can certainly pay more as long as you have all of your costs and details figured out. Currently the East & West coasts are known as cold markets right now and the Mid West is doing well.

You can make money in either market both hot and cold. You just have to know how to buy and know your numbers.

You should do some research to find the appreciation rates for your area. CNN used to have some good information years ago but that has seemed to went away. Here is a nice link with some information.

http://money.cnn.com/popups/2006/fortune/invguide_realestate/index.html

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