Very Rural Properties

[Tim Y.]

I have money to invest but I'm taking time to formulate my strategy for investing in rental properties.  I live in a very rural area...southern Virginia. In my world, Roanoke and Winston Salem are very large cities.

I live in a town that doesn't even have a gas station. Nothing. I'm wondering if anyone has attempted a strategy of buying rural properties for either rentals or owner-finance income deals, or if it's a "must" to look in populated areas? For me, that would be Roanoke, Lynchburg, Greensboro, Winston Salem, etc.

Look forward to hearing your thoughts.

[Matt Swearingen]

@John Davis

I know a rural investor from my hometown with 40+ doors. The guy runs a roofing business, can't even turn on a computer and does mortgage amortization tables in his head. Also he's a multi millionaire. He and his wife always drive brand new model year cadillacs.

The key to rural investing is find a  good school district. For people that like rural living good schools are hard to find.  With a more limited pool of rentals it isn't hard to have the nicest ones in the area. Then you can be selective about tenants. 

If you must invest in rural areas I would suggest you look into flips and mobile home parkCadillac. Flips are easier to get into because houses take longer to move with lower population density.

Check the county's census results and see if the area is growing or shrinking. Some rural areas are just dying, so not good for long term plays. 

The best rural locations are unincorporated townships that are close driving distance to jobs and stores. The property taxes are lower than the burbs 5 miles away, with less regulation. You'll find random outcroppings of "McMansions" in plans where a developer bought a farmer's field at auction (usually when he passes) and put in a bunch of cookie cutter yuppie houses.

What is the goal of your investing? Do you just want financial freedom? Maximum returns? Find out your goals and your "why". Then see if rural investing fits your goals. It might not be worth it and driving to Greensboro might be the right answer for you.