Small town investing

[Patrick R Morrison]

Hi All!

I'm new to investing. I came across a deal for several units/properties in a small town in the Midwest. I'm trying to do due diligence and assess the risk, however I've never considered small towns before. All neighborhoods seem to be fine, and the properties seems solid, occupied, and cash flowing. This would be a brrrr deal, with good cash flow to start, however I have to borrow money (heloc) to get in, with cash out refi in close to 3 years.

What is the risk in small town (pop: 25000) investing? What is the worst thing that could happen? What are some of your due diligence check boxes when looking at a deal like this? Any help would be greatly appreciated.

Cheers!

Pat Morrison