Higher risk means higher volatility and thus a higher probability that expected returns do not actually play out as planned.The low risk markets though tend to overtime far out perform the high risk markets.

It will, depending on the financing, rents are strong in that area.Let's say you take a mortgage of 600k (75% of your ARV) Taxes - 5k Annually Insurance 2k Annually Rate - 7.5% 30 Year Fixed Your PITI payment would be $4,778.62If the lender is using a DSCR of 1.1 - you would need actual / market rent of $5,256.48 to qualify for a 75% LTV loan. 

Anyone that tells you they haven't heard anybody, or seen it, it's cause it never gets that far due to actual coverage.

Our contract actually states this, so no surprises to our clients.

I actually live outside of Coachella Valley; I just run my business there.

I have actual never heard of the group, I looked them up and plan on attending it within a few months after I finish college(I'm currently in the upstate).

@Ronald Isgate I actually realized I didn't include location, so my apologies.

Lessons learned for the next tenant to include an early lease termination agreement to actually write out what the consequences will be for example one or two months  rent plus security deposit etc.  

@James Carlson, we actually stumbled upon a request on Facebook.

Why would you think the higher cap rate market is better when the market is actually paying MORE in the lower cap rate markets?