Why invest in expensive areas like SF?

[Jeet Sangha]

I always read investors trying to invest out of state because California is so expensive or the margins don't work out as a rental. SF and surrounding areas have a huge rental market. There are many landlords and flippers who are doing just fine investing in an expensive market like the Bay Area. If you flip a $1M house with just 15% ROI that's $150k from just one flip whereas a $200k flip in a different market will net $30k.

I would love to hear from investors in expensive market places make a case for investing in high end markets. Why do you prefer to flip or rent in expensive regions like SF, LA, NYC etc?