Small Town Multifamily Properties - Worth Buying?

I've been asked multiple times: Should I buy Multifamily Properties located in small towns?

Personally I like the secondary markets but it's not for everyone. The answer, as always, is: It depends.

Small towns in secondary/tertiary markets has their pros and cons. Let's review some of them:

Pros:

• Not a lot of competition - Unlike the big metro, these small towns don't have a huge apartments complex on every corner. Sometimes, you're the only game in town.
• Less crime - smaller town properties are usually quieter than other properties. Most of the residents are either blue collar working class that goes to work in the morning (at the local factory/hospital/etc) and don't look for trouble at night or senior residents that just downgraded from the headache of maintaining a falling apart house.
• Better at weathering economic downturn - real estate ALWAYS has a cycle. It's important that you buy with that in mind. When the economy is going through a downturn the higher end properties are the ones that take the first hit. Small town properties are usually C/B class properties and are usually charging a reasonable rent that will enable them to maintain the residents through hard times. People can cut down on expense and will forego the complex with the gym and the fancy pool but they still have to live somewhere.
• It's a community thing - When you buy a multifamily property in a small town, EVERYONE knows what's going on in the property. Do a good job, keep the prices reasonable, the crime away and the property well maintained and you won't have to spend a single dollar on marketing and advertising. 

Cons:

• Distance from civilization - the secondary and tertiary market poses a unique challenge because of the distance. If you are a multifamily investor you probably don't live in these remote towns (nothing against small town people, it's just statistics). Keeping an eye on your property and an occasional visit could become a day long trip.
• Distance from civilization 2 - finding a good maintenance person, leasing agent or a property management company is going to be more challenging because of the distance. You best option would probably be to relay on the local community.
• It's a community thing - When you buy a multifamily property in a small town, EVERYONE knows what's going on in the property. If you don't keep it up to date and clean from crime you will not find anyone that will come to live in your property. 
• Appreciation won't be as good as the metro properties - If your exit strategy is short term buy and sell then small town multifamily properties might not be the one for you. unless there is a major value add play the chance of these properties to appreciate much over a two years period is very low. Your fellow investors from the big city might be bragging of higher appreciation rates in the next club meeting.

To recap, your EXIT strategy is one of the most critical things in your PURCHASE decision or in other words: 

If you don't know where you want to go, how would you know which direction to take the first step?