Is every area rentable?

[Aris Mantalvanos]

Hello,

Looking at buying two properties side by side, in rural NC. It's actually close to I95, but more so on the outskirts of a couple decent sized towns (7k people and 13k people).  The closest town is population 600 (if that gives you any indication).  Properties are located on a major road.  Across the street is a trailer park.

Right now, the properties are owned by the same family and are being used to house extended family.  I would buy them and turn them into rentals.  One 1930s built 2br/1ba. Possibly 3br/1ba and the other is a 1980 manufactured home 3br/1ba.  Probably need about $10k in rehab work between the two. Otherwise they were kept up pretty well.  Nice lots with a big shelter that straddles both properties (that's a whole other story).

Apprehension stems from the fact that rental comps are mainly for the bigger towns 10 to 15 minutes away.  Not in the middle of the country, so to speak.  So, don't know how rentable these are. Is every area/geo rentable?  It would be easier if I could tell you there was an Amazon distribution center down the road, etc.  BUT nothing like that in that area.

Otherwise, based on those rental comps these would cash flow decently and the purchase price puts this over the 1% rule. Cash on cash ROI is about 10%. Realistically, this wouldn't be a bid to get these to appreciate. I don't think that would happen. This would strictly be buy and hold in order to collect rents every month and I'd be in a 100% equity position from the start.

Thanks for reading.  Just trying to keep my head straight.  Don't want to miss out on a potentially good deal, but don't want to take a deal just because it 'seemed' good either.