I would also be concerned about the friend's statement that the demand is high "this year".

Initial signs point to these areas as being healthy opportunities as long as the right deals are found but it would be extremely helpful to hear more about the cash-flow opportunity (as population growth may be driving up prices), if this area was hot a few years ago and may be cooling down and any other market-specific aspects that I may be missing/not including in my research.Any feedback would be greatly appreciated!

The concern here is I try to keep my hassle free pay on time tenants.

The neighbors also report that the tenants are "really wild" (a neighbor's son hung out with them) and "stepped right off the Jerry Springer show," and they can't imagine these people will stick around for that long.I am concerned that the proper background checks were not done - am I within my rights to ask to see the paperwork for these checks that they claimed they do on all tenants?

I recommend you visit this site - https://www.hopb.co/nevada/ - and do a little research into what Nevada statutes say/define "reasonable" where fees like what you are being assessed are concerned.

To be honest and this might be silly, but my only real concern is that since the Server minimum wage in Colorado is over $7 that it might be a little harder to get a server job there than in NJ.

They are having a hearing open to Landlords, Tenants and stake holders (general public as well) to provide them with your comments, concerns and ideas.

Cash buyers, or those using hard money lenders, are much easier to deal with.I wouldn't be too concerned, though. 

I'm particularly focused on the sourth east markets right now and certain ones are not extremely hot. 

The ego or smarts of the bigger fish IS a concern...starting out cpa is very important because I am small.