Advice on investing strategy

[Salvador Aldrett]

Dear Bigger Pockets Collagues,

  I have a question.  I have been investing in a College town for about 8 yrs now.  When I started investing the cap rates where about 9, but over the years, consturction has been booming and rents abviously are not keeping up with prices, so by now the cap rates are close to 3 and therefore no longer as attractive.  I have been thinking about extending my search and going to small towns around (say 40 mile radius).  I have been able to find deals that look attractive (12-16% cash on cash).  I still have not taken the plung and bought because I want to understand risks of investing in small towns (say population <5000).  The town is abviously near places that provide employment, but nonetheless is small town.  What questions should I be asking myself to identify as many potential risks as I can?

Many thanks in advance for any words of wisdom from those of you more experienced investors

Salvador