The usual response is that is high risk and lacks diversity.""

The economy is very diverse with multiple tech companies, universities, healthcare, military, import/export, etc.

A combination of flips and income generating SFR's are what I think of as the beginnings of a diverse portfolio. 

What I am saying is that you should have a diverse portfolio if you are going to invest there and that it may not be the best area for first time investors.When the market cycle changes there will be losers and winners just like in every market cycle change.

Here's why I like Indianapolis:1, Diverse, vibrant economy (lower unemployment than Dallas)2.

Biggerpockets community is truly awesome through their diversity (buy and hold, wholesalers, bird dogs, commerce, developers, flippers, agents, etc).

You didn't fail...you succeeded in verifying (and critically thinking about) something as opposed to just accepting it because others say it's true.Something that a lot of people confuse about the 2% and 50% rules though -- they aren't UNIVERSAL rules...they are rules OF THUMB (the term "rule" is often confused).  2% rule of thumb doesn't say you need to buy 2% properties, just that if you buy a 2% property, there's a reasonable chance (see exceptions disclaimer below) of generating decent returns.  50% rule of thumb doesn't say that every property, every year, in every location will throw off 50% expense ratio, just that a long-term, diverse average is about 50% (see exceptions disclaimer below).Of course, there are of exceptions to both of these rules of thumb. 

It is a very diverse community with lots of character and lots of assets.

background: currently living in Huntsville, AL and loving the huge diversity and increase in spending in the city

All-in-all, super diverse town.