New to REI. I want to purchase in a rural area for cash flow...
Hello, I'm new to BP and REI. I have been listening to podcasts and reading books and I believe I found a great investment opportunity. However, there are some things that I am concerned about and would appreciate some guidance.
Since the property is in a rural area, my plan is to buy the duplex with a cash offer with the 70% rule. I then plan to 'refinance' the property and take the equity and continue with the BRRRR plan. The property is selling for ~$50K and current renters are paying ~$500/month per unit.
I'm worried about several factors:
1. The population growth is on a negative trend. (Since this is a cash flow buy & hold property I'm worried that maintaining tenants in the long term could be an issue.) Should I stop here since the property is not at a growing market?
2. I'm not living there, I will have to use a property management company. I only see 2 property management companies in the area, but they don't have a website and 1 realtor site. Could someone help me with several guidelines on how to choose the proper PM?
Thank you in advance,
Steve K.