I live in a suburb of Rochester, New York , which is the third largest city in New York State (behind New York City and Buffalo). When I meet other investors, their first assumption is that my investments are in Rochester. The fact is, I don’t own any investment property in Rochester. All of my investments are in small towns about an hour away from Rochester (populations of ~3,600). The next question that I typically get asked is “why don’t you invest in Rochester?”
Benefits of Investing in Rural Markets
There are probably a ton of reasons why people would choose to invest in rural markets. Below are some of mine.
Familiarity with the Area
I as born and raised in one of the towns that I invest in. As a result, I spent 18 years of my life there. I know every street. I have been in many of the houses as the people living their were friends and family. I understand the economics, trends and where the jobs are. I relocated to Rochester after college and as a result it would be much more difficult to learn a market here as well as I know where I grew up.
There are only a few “serious” investors in the areas that invest in. This means that people I talk to typically have not received marketing pieces from 4 other investors and I do not have to work as hard to find a deal. In some cases, deals find me because I am one of the few investors in the area.
Properties are Less Expensive
The average property value in my market is $73,000. There are a lot of properties …read more