First Rental in a small town to reduce risk. Good or Bad?

[Joshua Zajac]

So after a 2 year drought from BP I finally got my act together and really started to get my mind and personal financial affairs in order. I will be debt free at the end of January. I have already 2 months of an emergency fund built but but was looking to build it up to 4 to 6 months. I must have listen to Podcast 200 at least 3 or 4 times and thought it was best. That provide me with such a simple but realistic path on starting out. So I'm ready to start looking at my first investment property. I have used the BP calculators to analyze deals and took Brandon Turners advise of analyzing a deal once a day to gain experience and to be comfortable with it. So my thought moving forward is I was looking to acquire this first property in a small town in Northwestern Illinois that is about an hour and half drive from me (I live in the Western Suburbs of Chicago). My business partner moved out there 2 months ago and I kept asking him information about the area, the good and bad parts, the economy, schools, jobs, rental rates, etc. I plan to fund my first deal using a HELOC (My current house and completely paid off) and am looking for either a SFR or a duplex. I have construction experience and for my first deal would plan to do majority of renovations. The reason why I wanted to start out far away from my current home is due to housing prices are inexpensive (30K - 60K), it feels like it would like less risk (money wise) and from what I gather not as many investors are out in this area. Plus I really want to prove to my self that I can due this and make it work. I did set a goal for myself to purchased my first rental property before the end of 2017. So I guess what I'm asking is, does this seem like a terrible idea to start out? Should I was tweak this in some way? Or should I rethink this plan entirely. I know I'm probably leaving out some key information, sorry for that. Any thoughts are greatly appreciated.

[Meghan McCallum]

I wish people would stop asking why a quality tenant would rent? I wonder why everyone wants to be someone else's employee? Its safe and their are less variables to deal with. You get a regular paycheck...they make a regular payment...its easier.

Not everyone wants to own, in fact, for some people it is a HORRIBLE IDEA! 

Divorces haven't slowed down since the last market swing, it crushes so many people's credit that they have no choice but to rent. In some areas renting is a better investment than buying depending on what market they are in. 

I LOVE and respect my renters, I have high end properties that they just have no idea how to maintain so they pay me to be responsible for their home so they can focus on more important things, their family, their businesses they run, and travel. I have some renters living in million dollar homes of mine that wouldn't be caught dead pushing a mower and they don't feel like worrying about who to hire, writing out checks for work done, buying new appliances, paying taxes. Renting from me is a one stop shop and the changes in tax rates, city zoning laws, and the ability to pick up and move if something changes in their lives is VERY appealing to them. 

Millennial also all first came into the housing market while they watched their parents lose their asses, they make life long renters, also the baby boomers...they are downsizing, want an ease of living and don't want the maintenance...great renters.