Multifamily Investing in Depressed Areas/Towns/Cities

[Alan S.]

I wanted to get some thoughts from all of you experienced Multifamily investors out there on my situation.  I live in a suburb North of NYC and with property values and taxes where they are around here, it is very difficult to find cash flow properties within a half hour drive where the numbers will work.  However,  if I go a little further North about 45-50 minutes drive into Orange County, NY, there are a few towns and cities, some somewhat depressed and school districts with bad reputations where I certainly would not move my family to, that have much lower property values, much lower taxes and the numbers work.  I have heard the rule of not buying a property you would not live in yourself but don't want to buy a property that is very far from me either.  Would you have any reservations investing here if the vacancies are quite low?  Any other objections or experiences investing in an area that sounds similar to this?  Thanks in advance.