Small towns - pros and cons

[Vikram C.]

There's a small apartment complex in a very small town of about 10,000 people. The seller is very motivated but I am hesitant because I don't know much about small towns.

The town is in the SW and is a county seat. Most jobs seems to be in the government, health care, school district, etc. The town is growing at about 1% per year in population. Income is less than that of a big city but normal for a small town.

I would buy only for cash flow but am concerned that even that could dry up if something bad happens to the town. Maybe people just leave and it becomes a ghost town? Do such things happen or is that not something to worry about?

Any other thoughts about investing in a small town?

Thanks!