He said that they purchased an asset with rents that have not increased in 5 years (can't remember exact amount).

Come to find out the courthouse has standard forms for this.

I was able to work with them to get a 5% rent increase put in place within 2 months of closing.

My question is if it's always better to purchase properties in cheaper market where it takes less capital and the rent to price percentage is easier to get above 1% or if it's worth investing in a city like Denver where it's very hard to get the rent/price ratio over 1% but the cost of the real estate increases much quicker than it does in other less desirable places to live?

Tell them filing of the eviction papers is simply standard policy.The eviction process takes time and you do not want to waste a minute.

Essentially what that means, is if you lied on the loan application and at a later date the bank figures that out, you are on the hook.Having said that, you will have a hard time getting a non-recourse on a standard residential property (1-4 unit).

Overtime I imagine this will increase.

If you have the ability to do so, increase your earnest money deposit.  

I don't know any.There are different standards out there.

Cash on cash before rent increases with newly minted leases is about 4 to 7% going in.