Higher risk, as it limits your exit strategy since your property value is declining and you likely owe more than it is worth.

So the pros and cons of interest only are less cost per month but non-declining balance.   

Real estate is so local...some areas held their value during larger urban declines. 

ChatGPT is proving to be pretty poor quality (and declining) with stuff like this, doesn't seem particularly helpful or accurate

Receiving phone calls from potential tenants and answering questions, going to location for showings, scanning and approving/declining applications, running background checks/employment histories, placing marketing signs at locations, placing online and newspaper ads, taking calls from current tenants (answer questions, fix problems, collect rent, send late notices, process payments, make payments/deposits to investor's accounts, arrange repairs/maintenance and oversee contractors and other service providers, take calls from investors and answer questions, serve default notices, attend eviction proceedings and court appearances, and I am sure I am missing some other items as well.That all takes time and effort, gas money, car payments, phone bills, marketing expenses, etc.

https://www.smithsonianmag.com/smart-news/hoover-dams-lake-mead-hits-lowest-water-level-1930s-180978022/Declining water levels has been a problem for a few years now in Las Vegas. 

I usually look for cities where overall crime rate score is below 500 and have been declining over the past few years. 

@Andrew Jacksonin response to your general investing psychology question:Assume the LV market declines 20% by May 1. 

Seller said multiple lenders declined to appraise the house for the last buyer under contract. 1 creative lender was willing to lend but up to about 60% LTV.

@Jennifer LindstromYour list of prospective lenders significantly declines when you say short term rental and mixed use in the same breath.