I found two nice rental properties in Evansville, IN, south from the University of Evansville. The properties already produce very good cashflow, so I'm inclined to buy them. However, when I look at the stats, I see that the population of the town is slowly shrinking (about 0.5%/year since 1960s). Question to the people familiar with the area: should I be concerned and pass on the opportunities there? Do you see any reason for the trend to change (say, with aging population, hence, with more jobs for the local hospitals) or to accelerate?

Very much appreciate any opinions!

@Tigran Kalaydzhyan welcome to Evansville and not knowing the streets the houses are on you can definitely expect to keep the properties rented. Evansville is a great market for the beginners to the pros as it is truly a renters market. I personally do not worry about the decline it has seen as the city is back to thriving from opening a new medical school soon to different projects the city has going on. Definitely safe to say that depending where the houses are located you should see a nice return!

@Tigran Kalaydzhyan Evansville is one of the two markets that I am actively investing in. You historically see a very stable (or slightly declining) population, but that is only one piece of information. When looking holistically, Evansville is a high-yield (cashflow) market that you can build a great team and find some great opportunities in. (The people are the best part!)

Tigran, 

I would agree with the others who've already commented that Evansville is a great market for rentals.  Its one of two markets I'm investing in currently.  The stagnant population was a concern of mine prior to investing and still is in the back of my mind somewhat.  However, the community was very dependent on the manufacturing sector for jobs.  As technology and automation have replaced many of those jobs, Evansville has remained relevant by shifting its economy more into healthcare and education.  There are a number of revitalization projects underway downtown and I'm hopeful that the long-term prospects are bright.  In the meantime, you can enjoy 2% rule deals.  

I'd recommend getting very familiar with the map of the city and the property values.  Its very street by street.  You can literally drive 2 blocks and the landscape will change from owner-occupied properties with clear pride in ownership, to run down C class rentals.  Be cautious when pulling comps.  I personally like foreclosures, auctions, vacants, etc., where I can add value through rehab (with the idea of BRRRRing) to mitigate some of the risk of buying high.  Just an FYI, there are a few older investors who are selling a lot of their properties to simplify their portfolios.  Some deals, but be careful of paying for what looks like turnkey, but actually has a lot of deferred Cap-Ex.    

@Tigran Kalaydzhyan

Question from someone outside the market: how is the MFH market there. Say from 4-12 unit range? Thanks a ton

Originally posted by @David Campbell :

@Tigran Kalaydzhyan

Question from someone outside the market: how is the MFH market there. Say from 4-12 unit range? Thanks a ton

 You'd be into C class properties with rents of $450ish for 1/1s (tenant paid utilities) or $600 for landlord paid utilities.  Budget for a higher than average expense ratios in your pro forma numbers. 

Hey guys! I’ve been keeping an eye on Evansville real estate property for a couple months and I’m real interested in purchasing small multi-family properties. Does anyone know or have a map of Evansville with street to street on class A B C?

How’s finding a good contractor and property management in Evansville?

@Kevin Sabatino I've been very pleased with ERS Management in Evansville. They can assist with tenant placement and ongoing management of rental property and recently did a rehab for me that I was very pleased with. 

@Nathan Beach that’s good to know I’ll definitely look into that. Are you investing in single-family homes or multi family homes in Evansville?

@Kevin Sabatino currently have a couple of single families up there but would do small multi-family also, just haven't come across the right one yet.