Anybody else prefer investing in small cities with no growth?

Question

I invest in a small city that's had a population of 45,000 for the past 50 years. Appreciation is slow, houses sit for a long time on market and there's not a ton of industry in town. While this violates lots of conventional wisdom about where to invest, I absolutely LOVE investing there!

Homes can be purchased off the MLS for a great value, simple things like a quartz counter top can put a house miles ahead of the competition, relationships go a long way and best of all, there's very little competition from other investors. Does anybody share my enthusiasm for these types of cities?

Brandon Sturgill · Answer

Everyone needs a place to live, right ;)

Michael Tal · Answer

This is how I started out as well in England, investing in remote cities where it was a lot more affordable to get into the market.

Whitney Spatz · Answer

Hi Aaron. Glad I found your post! I invest in Terre Haute, IN -- similar market stats. I grew up there so I have strong relationships w/agents and managers and know the anchor industries well (universities, hospitals). It scares other out-of-state investors away so good for competition and I'm able to cash-flow which is my focus at this point. I don't see many posts or proponents for these kinds of markets so thanks for posting (I feel less alone!).

Rafael Paz · Answer

@Aaron Hollingshead Good to see someone else investing in SE NM. I live in Artesia, NM and I was weary of investing here when I moved here a year a half ago. What eventually drew me to invest was the lack of rentals & updated properties on the market.

The lack of competition is also a perk since you can find distressed properties relatively easy.

PM me if you are interested in getting together to discuss investing in SE NM.

Rafael

Christian Nachtrieb · Answer

@Aaron Hollingshead I'd be curious to see a breakdown of one of your recent investments as a small case study just for reference. What kind of numbers and return do you see?

Brandon Carriere · Answer

I invest in a small depressed town like this, and while there are lots of other investors, it still returns great money.. Didn't really invest there because of this fact, I just cant argue with the cash flow

Anybody else prefer investing in small cities with no growth?

Anybody else prefer investing in small cities with no growth?

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