Appreciation vs. cash flow

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Has anyone been successful buying a hip condo right downtown in an up and coming city at the price point of around $150-200k even though it is cash flow negative? Specifically, I am asking people who purchased for the sole intent of renting it out. Not people who purchased it as their primary residence and then rented it out once they moved away. I know that appreciation is a gamble, but if a city's economy is diversified and there is a finite amount of land in the prime location that is downtown/waterfront then chances are it should appreciate, right? I mean I am amazed at how expensive some condos are going for in places like Indianapolis and Boise for example compared to the prices just a few miles away from the city center.