CA luxury rentals and top dollar land

[Caroline Benish]

I live in Beverly Hills, and despite what people think, I see so many run down homes every day that would make for a great BRRRR. I need to do more specific research, but the monthly rents for 2-bed luxury rentals (in MFH sometimes) go for about $5k-$9k/mo. Considering people in this area can afford so much, I'm curious what people see as the downside to investing in an area like this? It seems everyone is a lot more interested in investing in middle/low income areas and I'm wondering if there is a reason for it.