Buying In small towns

Member since 2024 · 60 posts · 15 votes

Do any of you invest in rental properties, wholesale, or flips in small towns? I’d be looking for areas with major stores or ones that are close to a big city but not too far. I’m thinking a small town could be a great place for me to start compared to big cities. I’m considering either buying a rental since it’s cheaper or purchasing a flip if the market is booming enough. Anyone currently investing in small towns? Let me know your thoughts below

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Ben FernandezBusiness Member

Realtor · Lancaster, PA · Member since 2025 · 169 posts · 97 votes

Small towns can be lucrative depending on the unemployment level, population trends and safety. I live in Lancaster, PA and it's a lot here that's very positive.

Our market is historically pretty stable and hasn't been subject to sharp increases followed by sharp decreases in property values. Our unemployment is very low and there has been a trend of increasing population and employment.

Do your research and determine where it is you want to invest. Then make sure there are ample property management companies in case you'll have any attrition. If I can be of any assistance, feel free to connect.

[email protected]717-945-7040

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Blake McWilliamsBusiness Member
Realtor · Effingham, IL · Member since 2021 · 57 posts · 33 votes
1y
Hey @Kylie A.! I currently invest only in rural communities and small towns and its allowed me to scale to 24 units in three years. It is not only possible but it is scale-able. One community I invest in is currently adding a quarter billion dollar mixed use development the other is at an interstate insertion that 4x's the population with travelers daily. I'm more than excited to give you more detailed insights if you have more questions! Feel free to connect!
Cheers!
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AJ ExnerPro Member
Lender · Springfield, MO · Member since 2023 · 661 posts · 320 votes
1y
Quote from @Kylie A.:

Do any of you invest in rental properties, wholesale, or flips in small towns? I’d be looking for areas with major stores or ones that are close to a big city but not too far. I’m thinking a small town could be a great place for me to start compared to big cities. I’m considering either buying a rental since it’s cheaper or purchasing a flip if the market is booming enough. Anyone currently investing in small towns? Let me know your thoughts below

Hey Kylie,
VERY doable as long as you are cognizant on a few things.
Most groups are fine as long as the actual appraisal doesn't state that its Rural (see example below for where it would be on an appraisal). Even towns of less than 10k, as long as it is in a "good part" of town and there is somewhat stable growth in that area, then most lenders will not add any additional underwriting guidelines, especially if it is rented out.
I always like to do the Walmart check (kind of what you recommended being by a store). If you can clearly define your buy box and be up front with any program you go with, then you should be ready to go!
Good luck! Happy to recommend and help however I can.
[email protected]417-427-2612
1 Reply
Kylie A.
OP
Member since 2024 · 60 posts · 15 votes
1y
Quote from @Blake McWilliams:

Hey @Kylie A.! I currently invest only in rural communities and small towns and its allowed me to scale to 24 units in three years. It is not only possible but it is scale-able. One community I invest in is currently adding a quarter billion dollar mixed use development the other is at an interstate insertion that 4x's the population with travelers daily. I'm more than excited to give you more detailed insights if you have more questions! Feel free to connect!
Cheers!

yeah shoot me a message bc i hear so many ppl talk about its not good to buy
0 Reply
Kylie A.
OP
Member since 2024 · 60 posts · 15 votes
1y
Quote from @AJ Exner:

Quote from @Kylie A.:

Do any of you invest in rental properties, wholesale, or flips in small towns? I’d be looking for areas with major stores or ones that are close to a big city but not too far. I’m thinking a small town could be a great place for me to start compared to big cities. I’m considering either buying a rental since it’s cheaper or purchasing a flip if the market is booming enough. Anyone currently investing in small towns? Let me know your thoughts below

Hey Kylie,
VERY doable as long as you are cognizant on a few things.
Most groups are fine as long as the actual appraisal doesn't state that its Rural (see example below for where it would be on an appraisal). Even towns of less than 10k, as long as it is in a "good part" of town and there is somewhat stable growth in that area, then most lenders will not add any additional underwriting guidelines, especially if it is rented out.
I always like to do the Walmart check (kind of what you recommended being by a store). If you can clearly define your buy box and be up front with any program you go with, then you should be ready to go!
Good luck! Happy to recommend and help however I can.

if its rural is it hard to get lending or something I'm confused? I'm new to this so rn I'm learning
0 Reply
AJ ExnerPro Member
Lender · Springfield, MO · Member since 2023 · 661 posts · 320 votes
1y
Quote from @Kylie A.:

Quote from @AJ Exner:

Quote from @Kylie A.:

Do any of you invest in rental properties, wholesale, or flips in small towns? I’d be looking for areas with major stores or ones that are close to a big city but not too far. I’m thinking a small town could be a great place for me to start compared to big cities. I’m considering either buying a rental since it’s cheaper or purchasing a flip if the market is booming enough. Anyone currently investing in small towns? Let me know your thoughts below

Hey Kylie,
VERY doable as long as you are cognizant on a few things.
Most groups are fine as long as the actual appraisal doesn't state that its Rural (see example below for where it would be on an appraisal). Even towns of less than 10k, as long as it is in a "good part" of town and there is somewhat stable growth in that area, then most lenders will not add any additional underwriting guidelines, especially if it is rented out.
I always like to do the Walmart check (kind of what you recommended being by a store). If you can clearly define your buy box and be up front with any program you go with, then you should be ready to go!
Good luck! Happy to recommend and help however I can.

if its rural is it hard to get lending or something I'm confused, I'm new to this so rn I'm learning

It can be. There are lenders that "specialize" a bit more into those kind of areas, but from the eyes of a lender, what could happen is that they see 'rural' as a sign that you might struggle finding tenants down the road. So they often will reduce the leverage of the loan (getting 65% instead of 75%) or deny it (which isn't as likely).
[email protected]417-427-2612
2 Reply
Gary NelsonBusiness Member
Real Estate Agent · Branson, MO · Member since 2016 · 141 posts · 93 votes
1y
Hi @Kylie A., when looking at small towns, focus on markets with strong rental demand—whether from visitors, local workers, or a growing economy. Financing can be trickier in smaller markets, so work with an investor-friendly agent and lender who know the area. Might be a bit biased, but Branson is a great example of a small-town market where both STRs and LTRs can be successful. Tourism keeps short-term rentals booked, while long-term rentals offer solid returns at a lower price point with steady demand. If Branson’s on your radar, happy to chat!
[email protected]417-464-6915
Gary Nelson Real Estate, EXP Realty, LLC554 Reviews
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Nick BelskyBusiness Member
Lender · Orlando, FL · Member since 2021 · 1k+ posts · 704 votes
1y
@Kylie A.
Yes, but have your lenders lined up before you dive in. Most traditional lender business purpose lenders will not lend on rural properties or in small communities. However, having both a DSCR and fix and flip lender at the ready who is fine with rural properties will be key. Often you can find these lenders with a mortgage broker or by reaching out to a local bank or credit union in the market you wish to buy.
Cheers!
[email protected]
Belsky Mortgage, LLC521 Reviews
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Kerry Noble JrPro Member
Investor · Indianapolis, IN · Member since 2018 · 2k+ posts · 1k+ votes
1y
Im reading the book....."Inflationary 80s" and it spoke on investing in smaller towns with growth....Im definitely open to it...
1 Reply
Kylie A.
OP
Member since 2024 · 60 posts · 15 votes
1y
so after reading all the comments it just sounds like make sure i have lenders that's okay with rural areas
0 Reply
Kylie A.
OP
Member since 2024 · 60 posts · 15 votes
1y
Quote from @Kerry Noble Jr:

Im reading the book....."Inflationary 80s" and it spoke on investing in smaller towns with growth....Im definitely open to it...

have u bought anything yet?
0 Reply
Alecia LovelessPro Member
Member since 2019 · 3k+ posts · 2k+ votes
1y
@Kylie A. The largest town I invest in has about 7000 residents. It has a Walmart, Lowe’s, Home Depot, Applebees, and a 99 Restaurant which is a New England chain as well as tons of other businesses and restaurants.
If you find the right small town area it can work out well.
1 Reply
Kerry Noble JrPro Member
Investor · Indianapolis, IN · Member since 2018 · 2k+ posts · 1k+ votes
1y
Quote from @Kylie A.:

Quote from @Kerry Noble Jr:

Im reading the book....."Inflationary 80s" and it spoke on investing in smaller towns with growth....Im definitely open to it...

have u bought anything yet?

I have not.....but I'm looking to.
0 Reply
Kylie A.
OP
Member since 2024 · 60 posts · 15 votes
1y
Quote from @Alecia Loveless:

@Kylie A. The largest town I invest in has about 7000 residents. It has a Walmart, Lowe’s, Home Depot, Applebees, and a 99 Restaurant which is a New England chain as well as tons of other businesses and restaurants.
If you find the right small town area it can work out well.

how did u run comps in those areas? since its most likely not a lot selling
0 Reply
Kylie A.
OP
Member since 2024 · 60 posts · 15 votes
1y
Quote from @Kerry Noble Jr:

Quote from @Kylie A.:

Quote from @Kerry Noble Jr:

Im reading the book....."Inflationary 80s" and it spoke on investing in smaller towns with growth....Im definitely open to it...

have u bought anything yet?

I have not.....but I'm looking to.

u got any properties now? shoot me a dm
0 Reply
Ben FernandezBusiness Member
Realtor · Lancaster, PA · Member since 2025 · 169 posts · 97 votes
1y
Small towns can be lucrative depending on the unemployment level, population trends and safety. I live in Lancaster, PA and it's a lot here that's very positive.

Our market is historically pretty stable and hasn't been subject to sharp increases followed by sharp decreases in property values. Our unemployment is very low and there has been a trend of increasing population and employment.

Do your research and determine where it is you want to invest. Then make sure there are ample property management companies in case you'll have any attrition. If I can be of any assistance, feel free to connect.
[email protected]717-945-7040
4 Reply
Walter Bowser
Member since 2023 · 44 posts · 19 votes
1y
Another item to think about on this when getting into flipping or rentals in smaller communities is the vendors or contractors that are in the area. Before you get a flip under contract it is important to know that you have a vendor/contractor you can trust that will do the work needed.
1 Reply
Alex Souvall
Member since 2025 · 2 posts · 2 votes
1y
Hey, I have a group that has invested in a rural area, and there is such little development going on there that there are literally zero vacancies. Most of the industry is blue collar work and some of our tenants have their rent paid by their corporate HQ, our all in cost for a new home there is $250k and we are bringing in $3k a month in rent and have had zero vacancies.

All of our cash has been going into a larger development so we haven't built on our remaining 8 lots yet, but if you are interested in getting involved I can send you more information or set up a call with our partners.
1 Reply
Kylie A.
OP
Member since 2024 · 60 posts · 15 votes
1y
Quote from @Walter Bowser:

Another item to think about on this when getting into flipping or rentals in smaller communities is the vendors or contractors that are in the area. Before you get a flip under contract it is important to know that you have a vendor/contractor you can trust that will do the work needed.

okay that's the tricky part is finding contractors in those small areas but my plan is to make sure it's connected to a big city
0 Reply
Kylie A.
OP
Member since 2024 · 60 posts · 15 votes
1y
Quote from @Alex Souvall:
Hey, I have a group that has invested in a rural area, and there is such little development going on there that there are literally zero vacancies. Most of the industry is blue collar work and some of our tenants have their rent paid by their corporate HQ, our all in cost for a new home there is $250k and we are bringing in $3k a month in rent and have had zero vacancies.

All of our cash has been going into a larger development so we haven't built on our remaining 8 lots yet, but if you are interested in getting involved I can send you more information or set up a call with our partners.

but how do they comp for those rural areas tho?
0 Reply
Corey ConklinPro Member
Investor · Member since 2021 · 129 posts · 209 votes
1y
I only invest in small towns. I've got properties in (2) towns currently that are around 10k people in each town. They are both 45 minutes - 1 hour outside of the closest city. They also both have declining population over the past 10 years. Huge red flags, right? What I've learned is that population, job growth, and proximity to large cities are surface level indicators but don't always tell the whole story.
These small towns are a niche market like investing in STR or trailer parks. I've learned a lot over my time investing in small towns and have found some great opportunities but just like any other niche market you better learn what you're dealing with or you'll get burnt.
1 Reply
Blake McWilliamsBusiness Member
Realtor · Effingham, IL · Member since 2021 · 57 posts · 33 votes
1y
Quote from @Kerry Noble Jr:

Im reading the book....."Inflationary 80s" and it spoke on investing in smaller towns with growth....Im definitely open to it...
Hi Kerry! I'm located two hours west of Indy. Would love to connect.
618-508-1808
RE/MAX Key Advantage4.427 Reviews
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0 Reply
Brian Kloft
Investor · Arizona & Oregon Coast · Member since 2023 · 128 posts · 113 votes
1y
Investing in "small towns" is actually a very broad term. Some people call small towns those with 70,000 people, others those with 10,000 or less. There are small towns that are just 20 min outside a larger city, so the town is small but an easy commute to a larger city for supplies and jobs. Then there are small towns that are more than an hour away from larger cities, so not commutable and Home Depot is more than an hour drive away.
Some things to look at are what is the job source for your tenants? If you are close to a larger city then that can be your job source. If you are far away from a larger city, is there a major employer that is a significant portion of jobs and if they close down will that have a huge impact of that town? I have a number of properties that are on the Oregon coast in towns that are 10,000 people or less. I am not worried about any major employer as tourism is the major employer and people will always be wanting to be close to the ocean.
As far as financing goes, I have been told to look at the local banks as they want their money invested in the communities that they are in. I have not had to do that yet.
Getting good contractors at decent prices can be a challenge in small towns if you are not close to a larger city. For example; I recently had to deal with a sewer line backup. I called every company in town to get someone out to cable or hydrojet the line. They were all booked up and it took me 5 days to get someone out there. In major cities I can get someone out for emergency service typically same day, even if I have to pay overtime for after hours work. It is not possible there. I am lucky that I can and like to go to my properties and do most of the major renovation work myself. It saves me a bunch of money and time.
In one of the towns the only hardware stores are Ace and True Value. In that town none of them are open on a Sunday, so the closest hardware store for an emergency on a Sunday is 1hr 20 min away. I make sure that when I am doing major work that I plan to avoid potential problems on a Sunday. ie I am not replacing valves and faucets on a Sunday in case something breaks and I need to shut off water and go get a new part to fix it and they are all closed until the next morning.
1 Reply
Kylie A.
OP
Member since 2024 · 60 posts · 15 votes
1y
Quote from @Corey Conklin:

I only invest in small towns. I've got properties in (2) towns currently that are around 10k people in each town. They are both 45 minutes - 1 hour outside of the closest city. They also both have declining population over the past 10 years. Huge red flags, right? What I've learned is that population, job growth, and proximity to large cities are surface level indicators but don't always tell the whole story.
These small towns are a niche market like investing in STR or trailer parks. I've learned a lot over my time investing in small towns and have found some great opportunities but just like any other niche market you better learn what you're dealing with or you'll get burnt.

can i dm u bc im curious on how u figure out how to comp?
0 Reply
Kylie A.
OP
Member since 2024 · 60 posts · 15 votes
1y
Quote from @Brian Kloft:

Investing in "small towns" is actually a very broad term. Some people call small towns those with 70,000 people, others those with 10,000 or less. There are small towns that are just 20 min outside a larger city, so the town is small but an easy commute to a larger city for supplies and jobs. Then there are small towns that are more than an hour away from larger cities, so not commutable and Home Depot is more than an hour drive away.
Some things to look at are what is the job source for your tenants? If you are close to a larger city then that can be your job source. If you are far away from a larger city, is there a major employer that is a significant portion of jobs and if they close down will that have a huge impact of that town? I have a number of properties that are on the Oregon coast in towns that are 10,000 people or less. I am not worried about any major employer as tourism is the major employer and people will always be wanting to be close to the ocean.
As far as financing goes, I have been told to look at the local banks as they want their money invested in the communities that they are in. I have not had to do that yet.
Getting good contractors at decent prices can be a challenge in small towns if you are not close to a larger city. For example; I recently had to deal with a sewer line backup. I called every company in town to get someone out to cable or hydrojet the line. They were all booked up and it took me 5 days to get someone out there. In major cities I can get someone out for emergency service typically same day, even if I have to pay overtime for after hours work. It is not possible there. I am lucky that I can and like to go to my properties and do most of the major renovation work myself. It saves me a bunch of money and time.
In one of the towns the only hardware stores are Ace and True Value. In that town none of them are open on a Sunday, so the closest hardware store for an emergency on a Sunday is 1hr 20 min away. I make sure that when I am doing major work that I plan to avoid potential problems on a Sunday. ie I am not replacing valves and faucets on a Sunday in case something breaks and I need to shut off water and go get a new part to fix it and they are all closed until the next morning.

I definitely wanna invest near the coast bc its so much potential but how do u comp and run offers for properties out there tho, do u do Airbnb at all?
0 Reply
Brian Kloft
Investor · Arizona & Oregon Coast · Member since 2023 · 128 posts · 113 votes
1y
If it is a duplex then I comp it like a house with an ADU. However if it is a larger property I comp it like I do a commercial property with a cap rate and with cash flow. Am I going to make money on it, is there a value you ad opportunity so that I can fix it up increase the rents and thus increase the value of the property. If it does that then I figure it is a good property. I do not do any short term rentals. Most of the places along the coast heavily restrict STRs. STRs are also not my game and I prefer to stick with what I know.
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