I can only speak for Champaign / Urbana by my take is we are starting to get in dangerous territories of being significantly overbuilt at UIUC. 

The danger here is that you have built in "negative" equity in the property.  

LA City and LA County both restrict your building based on how steep the slopes are on the property, you will have to satisfy all of the hillside ordinances, and then of course you have fire danger (which you will pay a high property insurance rate for).That said, the hillside projects make for beautiful homes and fun designs. 

Either that or they blindly follow just buy any old thing at retail price in a "good market" (be it CA or anywhere else) and you are guaranteed to make great profits, which is also very dangerous thinking.

Of course, wholesale has its dangers as well.

It's funny that you used Inglewood as an example city that you consider dangerous, but in reality is not. 

Very dangerous job to make physical contact as any creep or squatters can be inside the home taking advantage of young people.

I think action without any preparation can be dangerous.

Adjusting repairs to "make a deal work" or over estimating the ARV based on "well its spring time so it should be higher" or another statement outside of true hard facts is dangerous.  

Harder to see driving its dangerous also.