AMA - Should I Buy That High Cap Rate Building?

Linda from Katy Texas asks:

"I’ve been considering buying an apartment building in a depressed area with the hopes that I can fix it up and increase the value significantly. Even at today’s rents, the property is being marketed as a 10% cap rate property. I can’t seem to find properties that deliver that kind of rate of return in a more desirable area. Why would I pay that much more for a property in an expensive area and get a lower rate of return?"