Hi Lawrence and everyone…
Do you know my town? You have descibed it almost exactly – except that we think it’s funny that city people think we are disadvantaged.
We live in beautiful peaceful surroundings with no crime or traffic hassles. Anyone can afford to live here, (thus the low income renters providing a ready source of tenants for my local property)
Yes, I believe there is merit in your theory, as I am carrying it out now. My local houses are more than paying themselves off. (By the way, they are modest, but not dumps).
However, they were just a training ground for my property investing, as I have also since bought in a bigger neighbouring town and in Sydney.
I now want to sell my remaining local house, not because the financial plan was unsound, but because there is no property manager here, and I do not enjoy (or have time) being a hands on landlord.
If you have the time and energy to be hands on, go for it. Many country towns are not as gloomy as portrayed in the media, and you (and I) may very well be on to something here…