Buying rental property in SMALL TOWNS?

[Tricia Haggard]

Do any investors/landlords buy properties that aren't in high population areas? For example, I recently bought an investment property in a prime area,monthly profit $350.

The benefits of that particular rental are: low vacancy rates and quality tenants.
The drawbacks are: higher priced notes and a lot of competition when buying.

There are many nearby cities that have lower priced homes, and less competition. The cities I am referring to are in safe areas and good school districts, just not as populated.

I would prefer to buy in these areas because I have far less competition and the note I'd carry is much smaller.

I realize the vacancy rate will be higher, but by how much? I would assume you can get just as good of tenants, but I'm not positive about that either.

What's your opinion? Any investors buy in both high and low population areas? What's your experience?