Investing in Smaller Towns/Rural Areas to get started

[Cody Swainston]

Hi guys,

My wife and I live in a rural area (pop. 2,500) and are surrounded by mostly smaller towns. We do have one city near us with probably 50,000 people and then of course we have Indianapolis.

Up to this point we have being targeting larger areas. However, I have found a few properties in some smaller towns that, in terms of cash flow at least, look like really good deals. I am talking about towns that have between 8,000-15,000 people. I am finding duplexes and single family homes for under $60,000 that I believe would provide a 20%+ cash on cash return and a couple hundred bucks minimum cash flow each month. 

Is it crazy to buy in these areas? Most have slight negative population growth (-1-2%)  however, these towns are all within commuting distance of Indy. I know I likely wont see a whole lot of appreciation (if any) on properties in these areas but part of me feels like there is some real potential to make some money over a 10-15 year holding period, especially if I can knock $10-15k off the asking price. For a beginning investor, it seems like a low barrier to entry way to get the ball rolling. 

Thoughts?