The biggest problem with the MLS is that there are so many properties. It's just too much work to try and sift through thousands of properties looking for the hidden gems. The proverbial needle in a haystack.
I recently used a tool at http://www.mlsdonkey.com that does all the heavy lifting - let the donkey do the donkey work!
The tool searches the MLS, runs each listing through an Automated Valuation Model (AVM) and provides a full financial analysis on the property.
This means that you can search the MLS for real estate deals based on discount, cash flow and cap rate.
I ran a search in the Phoenix area (I live in Boulder, Colorado) and came up with 8 deals with a minimum of 55% equity, dozens of listings that would cash flow and 20 properties with a cap rate over 12.
That's a pretty good lead list.
I have my Realtor tracking down each property and giving me a "live person" confirmation that the properties are all good investments. So far, 50% of them look like good investments and the other half have been discarded as not investment standard.
Here's a link to the tool - http://www.mlsdonkey.com
Ross Hair
RealEstateAdvocate.com
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