I would not invest in any location where the population is stagnant or declining.Crime - People and companies will not move to locations perceived as dangerous.

It is the lender that perceives that a property cannot be used both for investment and as a 2nd home.And with that I"ll be the Mortgage Shop just got a whole new line of business :)

An automatic gate is one of the first things that will add safety and security to a facility, both real and perceived.

@Eric Lee Nation    I did ins claims in another life for 14 years - I do not recommend that EVER as someone's employment but I did learn a few things.Here's 2 things agents or no one will tell you -- your Replacement value (RV) on the house is JUICED up way higher than what's realistic -- however you have a relatively inexpensive house so it's not much of an issue - but typically the reason they juice the RV is to get your wind/hail deductible higher -- typically 1%, 2%, 3%, 5% of RV is what your wind/hail deductible will be even if you had a $1k or whatever other deductible they offer for any other peril -- so follow me for a minute - you bought a rental for $150k -- they've juiced the replacement cost to $250k the most likely loss in KS or the midwest in general is going to be wind/hail --- the math actuarial nerds do this so the casino or the ins company in this case has the upper hand -- do the math what a 2% or 3% deductible on a $250k house will be -- I have a commercial building insd for over a million -- the lowest wind/hail ded they will give me is 5% -- the only reason I have ins at this point is I'm required to -- the wind hail coverage is worthless to me with as high as the deductible is.Anyways with that out of the way - ask your agent if you have a 3% option - at that RCV cost they figured of $99k that wouldnt be much different than the $2500 all perils coverage you have now -- Also I'd wager as someone mentioned dropping the med payments to others coverage -- it probably wont make a bit of difference in your policy cost -- I could be wrong - but I'd guess $25-50 dollars a year -- your coverage is the price it is due to the perceived wind/hail risk the company is putting on KS.I'm with Big Red and have been for a # of years -- your price to insure that house is on par with what I get from them for that replacement cost -- though i think State Farms game is a bit different they really jack up the Replacement cost so I have higher wind/hail deductibles -- I'd make out good if the house burnt down or a tornado destroyed it - but for a hail claim there wouldnt be much there.

I would not invest in any location where the population is stagnant or declining.Crime - People and companies will not move to locations perceived as dangerous.

Do not invest in any location where the population is stagnant or declining.Crime - People and companies will not move to locations perceived as dangerous.

I agree that learning the art of sourcing off-market opportunities will serve you very well--both now, and in the future...whether you perceive the market to be competitive or not. 

Basically the price of an RE market is based on numerous parameters two of the largest being perceived risk and perceived appreciation (property and rent appreciation).Your first investment has been outstanding. 

There is no such thing as a good or bad cap rate.Cap rates are a reflection of the perceived risk in the asset, asset class and market.

Do not invest in any location where the population is stagnant or declining.Crime - People and companies will not move to locations perceived as dangerous.