I feel it's extremely risky dealing with an unfamiliar territory.

The danger is in the discipline it takes to pull this off.

Saying that I strongly believe he new it was dangerous. 

You are in a tough market so investing there isn't going to be very wise because most people are counting on appreciation which can be dangerous.

You might also look deeper into Jersey City, like in the Bergen-Lafayette area (the further south in Jersey City, generally, the more dangerous and correspondingly more affordable, so definitely look around the neighborhood and do your research about what you're comfortable with).Best of luck!

I strongly recommend jumping in and finding several local meet-ups so you can make some contacts, talk real estate (as much as you can so far), hear all the lingo and territory-info you can get, and be immersed in the reality of REI.

Continuing with eviction is also dangerous as the tenant may just leave water running 24/7. 

I think it is more dangerous for the seller, but if investor is serious and not taking advantage of unexperienced seller and have financial to use for "Due on sale", than it would be much better for seller.

If I remember correctly, it was over $3000 per year for E&O in TN.When I was much younger, I did a lot of hard work, some of it dirty, some of it dangerous.

You've heard the term "cap rate" thrown around and think that NUMBER means something so if someone shows you a 19.7% cap rate they want you to get all wet about the "deal" when an experienced investor sees "Danger!