CAP RATE question -- isn't higher better as a buyer?

[Ryan Logue]

When considering buying a 10-unit apartment complex, is it better to buy below the average cap rate for the market, or above the cap rate for the given market?

For example, there is a property I am looking at as follows:

Hardly ever any vacancy, strong rental history (confirmed), rent roll confirmed (possible ability to raise some rents), expenses confirmed, no major CapEx / repairs needed soon.

NOI: $50k

Cost: $500k

Cap rate 10%

Local average is 7% cap rate for B- / C+ apartment complex. 

What I don't understand is this --> this property will cash flow well, seems to be a great investment, yet is considered a "risky" investment compared to the market Cap rate average given that it is 10% versus 7%. I can even likely increase the NOI which will increase the Cap rate more. Yet people are telling me this too high of a cap rate and I should be hesitant. I don't understand it, can someone help...