Tertiary Markets

[Yonah Sturmwind]

I am wondering what people on here see as the pros and cons of investing in smaller tertiary markets. The population is lower and there tend to be fewer economic drivers making these markets, comparatively, riskier. That comes with a risk premium and high potential return. What are your thoughts on investing in these markets? 

Additionally, the real estate market, according to many analysts, seems to approaching the peak of the current cycle. How do you review new investments with that in mind?