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!

[Eddie Ziv]

The main problem, Vikram is the pool of renters. If people move on they tend to migrate to bigger towns or cities. The question is who replaces them. Government jobs show steadiness, but not necessary growth. There could be a substantial risk. You should really research the area and the building itself Find out the reason behind the seller's motivation.