Investing in small communities?

[Alex Hill]

I'm looking at a multi-family property in a small town (~4,500). The numbers look good, great cash flow, reasonable updates to be made. My only concern is investing in a property in this size of town. It's not part of a larger area with other towns close by, census numbers show it hasn't grown at all in the last 10 years. Don't think it's going to appreciate very much over time. How important is the location/market when it cash flows so well?

[Greg Dickerson]

As long as you are satisfied with the return and have no reason to believe occupancy or rates will change for the worse then it may be a good opportunity for you. Appreciation is always nice but not always guaranteed so best to buy on current cashflow than future appreciation.