Low income rentals? Pro/Cons?

[Nathan Duncan]

Anybody have advice on buy and holds in lower income areas? I've listened to the podcasts concerning it but want to hear other people's stories. The town I live in is a small community (<5000 people) and the majority of folks are in lower income brackets. The individual/mentor I purchased my home from also owns 36 rental properties. He and his wife have been in the business more than 50 years and they are wanting to eventually sell the entire portfolio and retire. He approached me about buying him out but I don't have the kind of capital to buy the entire lot right away but could buy several lots over time which he is fine with. He would owner finance the deal which is a plus. What have been the advantages/disadvantages to this type of market other than the obvious? One added benefit is that I'm a letter carrier in town and know if somebody skips out where to find them.