Rural Duplexes
I am considering buying a package of 2 duplexes in a rural town, population of around 3,500, but stable over the last 10 years. The primary "industry" in the town is farming, along with everything associated with that, which is primarily blue collar work, and about 8% of the towns population is below the poverty line, with a median HH income of approx $40k. Grade school in the town, high school is a few mile bus ride down the road in another town. The duplexes are currently occupied and recently renovated, so presently they don't need much work. I grew up near many towns similar to this in upstate New York, so I am relatively familiar with small town dynamics, that is not a lot of moving, population growth, industry, etc. The people who life in the town are the people that are required to sustain the town, that's about it.
Numbers below are listed for the package of 4 total units (2 duplexes):
Price : $135,000
Rents : $650 per side (4 total)
Taxes : $300
Insurance : $145
Financing : 5.5% @ 25% down, 30 years
Curious to hear your thoughts. My concern is obviously the low population and long exit time if I decided to sell down the road. Thoughts?