Is a large price drop a bad sign? (Pennsylvania specificly)

[Jonathan Blandino]

I've been looking at homes in the Poconos/East Stroudsburg area of Pennsylvania. The properties there seem to have taken a huge dive and not recovered well. I am look to capitolize on the drop and buy my first home for my immediate family. Not particularly considering this home for great cash flow or anything directly investment wise, but the deals seem too good. I am still an hour from NYC and family, better property tax (somewhat), and better property size and neighborhood compared to where Im from. What should I look for or do to assess these properties? Any resources on finding out why the market has stayed low and may continue to decrease in the area? If its just because the area is a vacation home area and far from a major city then great but I feel I may be missing something.  Anyone with insight to the area or in general I would appreciate it!

[Darren Sager]

I am generally most hesitant with investing in rural areas because I think its very important to understand who your target market is when it comes to your tenants.  What's keeping them in the area?  What industry is there that supplies jobs and how secure is that industry?  It's important to understand what drives the economy and what will keep it on pace long term if you're  a buy and hold investor.  If there's nothing long term to keep it alive then don't invest there.