Buying a Rental in a Slowly Declining Area - Seeking Advice

[Eric Castelli]

I am looking purchase my first four family and have largely been looking in a town about 20 minutes from where I currently live.  I grew up in this town and know the area well.   I have found 2 four families which exceed the 1% rule fairly nicely (1.5-1.6%).  However, for better or worse, the town isn't growing and property values have dropped some in the last ten years, and I don't have any reason to think they will go up.   The town is decent with lower crime rates but generally blue collar, with some smaller pockets of white collar. Even though I am solely interested in cash flow and not appreciation, I can't help but to feel concerned about the long term property price stability in the area.  

I am curious if anyone has an opinions on investing in this type of area.  Is it better to look for growing areas and for less cash flow? Or do I ignore the potential price declines and stay focused on cash flow?

Thanks in advance for any insight or experience you're willing to share. 

Thanks,
Eric

For reference here's a link to the real estate trends for this area: http://www.trulia.com/real_estate/Belleville-Illin...