All eggs in one basket (town)???

[Warren Straley]

I live in a small town of approx. 10,000 people. I have often wondered if it is unwise to grow a large (50 to 100 units) rental portfolio all in the same town. Has anyone ever thought about this, or have any advice on this?

I imagine there are approximate 5,000 residences in town. If I were to grow to 100 units that would only be .02% of all housing. Am I making mole hills into mountains??