My main question is, how would you tackle the situation if you are looking to build your portfolio in a tough market (Denver)? 

After crunching the numbers it seems planning on a 10% vacancy rate and factoring in a property manager the cap rate should still be close to 20% on the buildings I'm looking at. 

@Chris Wood - for me mainly time.

I'm not a foreigner national, but know of a product that is mainly for residential properties. maybe 2-4. interest rates are higher and the down payment is higher too.

If you invest capital gains in these zones then you can defer the gain until 12/31/26.Also if you invest in these zones before 12/31/19 and hold the investment for 7 years you do not record pay gains on the appreciation of the asset.The main criterion other than being in designated areas is that you have to either be the first user of the property or substantially improve the property.

Costs associated with them and trust factors?

Do you invest all over, or mainly stick to your area?

A good factor to put into play, if commute time is a top priority, is what time you will plan to travel for work and how many days you'll be "in the office." 

@Cayce Fedberg the main issue with investing in another market is that you have less control of your investment.

You should absolutely make sure all costs are factored into the NOI.