As far as buying these expensive properties....well we usually make a higher salary to compensate for the higher housing costs.  

Also, since the ratio of value/ rent is better for cash flow in these placesIt allows you to to buy a relatively safer property ( rentability, less repairs) that compensate for the risk you may see in the distance. 

Maybe the location is so good that sales compensate). 

If the seller refuse I suggest the agent gave up a piece of his compensation.

If the project presents too much risk and not enough return to sufficiently compensate you, then the deal's a no go.That's in a nutshell the basics of how I analyze a property.

If you can afford to think in 20 or 30 year terms it is hard to go very wrong with an asset that on average appreciates, and an income stream (rent) that you can compensate for inflation (raise).Example 3: Joe the Plumber has a low paying job but owns his house outright.

I can run this by my PM/agent but I would think the grad student market would be so much smaller than undergrad to even compensate for the difference.

This will allow you to compensate for setbacks in the side gig.  

Compensation is key as well as the ability to make sales.

Sorry to hear about your troubles.An thought, can you offer the tenant  a form of compensation, discount on rent for the inconvenience/utilities, tickets to a show.