Buying in small town

4 Replies

So, I’m in search of my first rental. Looking for duplexes in the sub $50k range, which limits me to low income areas and small towns. I found a duplex for sale in a small town, even VERY conservatively the numbers look great (thanks BP Rental calculator!!!). My biggest concern is not if it will cash flow, but if in such a small town it will take very long to find renters. Both units are currently rented but the leases will be up soon and I dont know if the tenants plan on re-upping. Anyone have any experience or insights with these small town rentals? The town has 13,000 people only Thanks!

Hi @Steve Franco , I started investing the beginning of 2017 and so far have only invested within my home town of roughly 13k. I’m sure you will get some great advice from more experienced investors and look forward to reading those as well!

There are people in my town who have retired by owning rentals in my small town, why can’t we do the same?

Best of luck to you!

@Steve Franco - best to start learning that market. Talk to a few property managers and find out 

(a) if prospective duplex is at market rent 

(b) the # of units the prospective property manager has vacant -> should be concerning if this is a high # relative to C below

(c) the # of vacant units available for rent in the city -> the lower the better

(d) call other comparables, and play the role of a prospective tenant (what’s the rent, what does that include, if no vacancy when do you expect to have one)

@Jay Helms Couldn’t help but respond once I saw where you live! We love Gulf Breeze and make a point to visit at least once a year.

This is great advice, thank you!  I'll let you all know if I move forward with this property.

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