Rentals in Location that has Future Growth Expectation

[Charlene Stovin]

I have one more, seems like I am full of questions

I have a town close to me that is smaller, not much there; real estate is still relatively economical compared to the DFW Metroplex.  Right now, there is major renovations going on to hotels and other buildings, and there is a ton of money being poured into the place (millions) to revitalize the community.

I am curious what people think about:

If I were to buy a property out there now, rents would cover the payment, insurance, maintenance, and management; there wouldn't be much left over that would be profit.  It doesn't sound like a good investment for now.  However, with such expected growth, and revitalization of the downtown area, and knowing/expecting once construction and renovations are done in late 2022, it would be tourism, more people, etc. would you invest there on the principle you want to make money long term on the property?

(understanding the CAP rate, other tools, etc. here on the site) - I am curious how many people look to what may be happening in the future to impact the choice to invest now - or choose somewhere else all together