Investing in declining areas

[Stephen Kunen]

 We are looking at deals in the declining area with very good cash flow. By declining I mean the population has been going down for the last couple of decades. Do you think it's a good idea to invest in this kind of area? Our concern is that even if it cash flows now we might have difficulty renting it out because the population is declining. Thank you!

[James Wise]

Originally posted by @Stephen Kunen:

 We are looking at deals in the declining area with very good cash flow. By declining I mean the population has been going down for the last couple of decades. Do you think it's a good idea to invest in this kind of area? Our concern is that even if it cash flows now we might have difficulty renting it out because the population is declining. Thank you!

 The lowest quality properties in these areas are the 1st to loose demand. Many times the nicer stuff always maintains a high demand. So long as you do not buy bottom of the barrel stuff you should do ok long term.