Typically expectations for NPNs by newbies is unrealistic and what they think they are investing looks more like gambling.  

I see no reason for any pressure on the rates based on the above.Actually, in all good reality, supply will be following suit slower than the influx of people drawn to this "hot region" simply because cities have no interest in allowing too much, i.e. uncontrolled, growth and will limit the ability to develop new construction.

I feel like I'd be taking a gamble with it.

"Hoping" you can get it rezoned after buying is a very expensive gamble.  

The mindset for many lenders is, "if you have to pack a lunch for a site visit, it's outside your area of expertise," which at this point the deal is effectively a gamble.

The gamble I'm taking here is that I can get the property rezoned.  

Too many competitors, nobody wants to go all the way down to AC to gamble when there are alternatives much closer (and a movement to allow casinos in northern NJ), the city is decaying, etc, etc.  

She is a drug addicted and has become violent, uncontrollable and has been stealing.

Its a bit of a gamble with this market out here, for sure.

Or is it really just taking a pot-luck gamble - every time?