Buying Multifamily properties in small towns a bad idea?

[Ryan Pollack]

I’m new to real estate investing and I want my first investment property to be close to home just for comfort level. I live in the Phoenix area and have been looking for months for small multi family properties that have potential to cash flow. Unfortunately, the market in Phoenix and the nearby cities/suburbs for about a 40 miles radius is the same. Inflated housing prices and not high enough rent for there to be any opportunity. But, taking a look at the available properties in the whole state, there are some very small towns that have multi family properties for cheap. I was wondering if anyone has experience with these types of properties?

Property 1: $150,000

Located in Arizona City, Arizona. Population 10,500

Duplex both units identical 3b2ba 1300 sq ft each. 1 car garage each

There’s 2 other 3b2ba single family houses listed for rent at $1,100 and $1,200 (they have been rehabbed.)

I believe rent could be $700/$750

Property 2: $180,000

Located in Sierra Vista, Arizona. Population 43,000

6 unit property, all 1b1ba units 475 sq ft, 6 parking spaces

Rent at $450/$500

When I plug in the numbers everything works out to positive cash flow. Are there specific issues I should look for in small towns like this?