The fundamentals of business apply in every business. I run into real estate investors who often focus on buying assets at a low price. That doesn't mean its a bargain. If the asset is a multi-unit residential building, the money is in the hands of the tenants. In order to create value, the money needs to transfer from the tenants bank account into your bank account.
The main factor affecting the flow of money from the tenants to the property owner is the balance of supply and demand. If demand exceeds supply, vacancy will be low, and rents will be high. If supply is high, and demand is low, then vacancy will be high and rents will be low. The market value associated with the asset is directly a function of the net earnings in the property, which is directly a function of supply and demand.
Rookie investors look for low price. I look for signs of white hot demand.