Lessons in the coffeeshop

[Ryan K.]

I've been considering a deal in a small town an hour away.  The property is a 4-plex + small retail storefront and is historically registered.  It's the best location in a poorly located town and is relatively affordable - possibly the cheapest listed 4-plex in the whole state.

Finally had a chance for an exterior inspection this weekend.  Very sleepy town, stopped in the only open business - a small cafe.  We were the only ones there with the friendly barrista.  He told us that the largest employer in town is a coal mine and, although they recently struck a new vein, huge layoffs are coming and the future of coal mines is bleak.  Also, in this town of 1,000 people, 6 people die per year in the mine (what?!  this hasn't been verified but he insisted it's been the case the past few years).  RE investment in this tiny town is obviously not a wise bet right now.

I'm sure like many on this forum, I'm young, ambitious, relatively inexperienced but itching to dive into the game.  That's why we're here, trying to get more info to learn and grow, which is why I wanted to share this story.

It reminded me of a quote from my Dad, a successful entrepreneur and businessman with an enviable RE portfolio.  Years ago, I asked him what was the best deal he ever did.  He carefully considered before responding, "The best deal I ever did was the last one I passed on."

2 takeaways: First, a bad deal can be worse then 10 good deals.  Secondly, you can often learn more by chatting at the local cafe (or to neighbors, local business owners, etc.) then hours researching on the internet or talking with local realtors.