Debt increases risk AND reward. 

But the rewards for REI far outweigh the risks.

My mortgage broker is telling me this is an up and coming area that is low risk, high reward potential. 

You should change the question to be like these: in what state AND county is the reward/risk ratio for tax deed is more promising in reality ?

From your perspective what are the risks vs rewards of each? 

Restoring houses so that another generation can enjoy them is rewarding beyond measure.

Colorado and numerous counties have been imposing restrictions on nightly rentals and continue to get more restrictive.

After that, you need to understand the essence of risk vs reward.

If you're really just getting started and you are trying to narrow down a list of potential markets, there are numerous publications that provide reports on everything from employment to housing to trends to major changes within cities, etc.

Effective management is key to maintaining and increasing the value of your investment.Step 7: Building a PortfolioAs you gain experience, consider diversifying your investment portfolio across different types of properties and markets to spread risk and increase potential returns.Mitigating Risks in Real Estate InvestmentWhile real estate offers substantial rewards, it's not without its risks.