Buying a good deal in a weak market- Jackson, MI

[Tina Herman]

I am ready to buy my first small apartment building and looking for deals in the 20-50 unit range.  I live in China, have family and a few duplexes in mid-Michigan and I have found a 24 unit deal with strong numbers in Jackson, MI (a city I know little about).  Everything I read about the Jackson market suggests it is bleak at best in terms of employment, pop growth, quality education, ect.  

To what extent does this matter if the numbers and tenant occupancy rates for my targeted deal are strong?  Hoping to hear some opinions regarding buying a good deal in a weak market.  Any specific experiences, positive or other, that others have had in Jackson, MI would be welcome, as well.  

[Sam Grooms]

@Tina Herman, you'll want to look at trends, not just last year's occupancy. Don't just focus on occupancy when looking at trends, either. Have rental rates been decreasing to keep occupancy high? You might not be able to see that in your typical T12 P&L (you'll only see cash collected), so ask for the rental roll from a year ago, and two years ago.

Also, look at economic vacancy, not just physical vacancy. Is their physical occupancy high because they're giving more concessions?