Its not a risky property. 

Now if you have properties that are cash flowing very well which allows you to keep up payments your risk is low. 

Trying to time these cycles are silly, but there is a new opportunity to diversify into tertiary cities which will last a long time.The biggest risk I see with mega cities is the continued tenant friendly laws making it harder for new investors  

However, realize a bank may not loan as much or your buyer may need more down payment to make it work.Biggest risk is it'll just sit there. 

It is too risky to buy something that old? 

@Raymond Ng Since you live rent free, it seems to be too risky to buy a owner occupied property in San Francisco.

We will definitely be checking out both areas again before we purchase, I am just conflicted about where to purchase investment property because I am coming in with a clean slate and can purchase a primary residence and investment property in the same town but it looks like DFW has lower cashflow with somewhat older properties and is more of an appreciation play (after the area has already seen considerable appreciation, which is risky) versus SA which has better cashflow and seems to be a more conservative play at the moment. 

All things considered, we found the price to be too risky in our opinion and much higher than other neighborhoods that we would be perfectly fine with living in.

So this introduces additional potential risk (I call this the "financial cliff" we are facing).As a conservative investor, I am personally waiting a couple of months until there's more clarity on all of the above before deploying into real estate.

With a 200k inheritance i would split it 50/50 between secure investments and risky ones.