Rental Properties in a Declining Market

[Eric Blue]

Hey BP, first time poster! I have read several blog posts on investing in declining markets but wanted to refresh some BP opinions on the topic... I am analyzing properties in an area that has seen an ~8% decline in population since 2010. It was averaging ~1% decline per year until the last 2 years its been ~0.5%. Per my analyses, there are small multifamily properties on the MLS that will cash flow between $100-$200 per door. For example, a rent ready or fully occupied duplex will sell for $50k and gross $1200/mo in rent. Most opinions I have heard (from trusted family and friends who still live in the area) are that the area has shown some steady improvement in new businesses over the last couple years which is likely keeping some young professionals in the area. I do understand those opinions may be biased so there is a bit more investigation to do on that end. The housing market in the area is also declining and if that trend continues it will limit exit strategies in the future. All that said, I would love to hear opinions on if it's worth investing in a declining market where there is cash flow but it is not immediately clear the area is "turning around" or there will be much (if any) appreciation. Thanks!