Small town REI... how small is too small? And why?

[Keith K.]

Hi Folks,

I've been looking at communities surrounding my area (Portland and SW Washington) and considering investing there for a buy and hold strategy.  I am wondering, though, if I should be excluding any of them by population.   I've heard a podcast guest mention filtering out cities smaller than 250,000 people, but then I know Josh jokes about Brandon owning his whole town...

So, is there point at which a small town becomes too small to invest, all other things being equal like job growth, rental rates, etc.?  Why?   

Thanks!