Is It Risky to Invest in a City Going Bankrupt?

I am looking into buying a rental property in a town that the prices for Multi Family homes are well priced. My concern is that the town's population has dindle down a bit and some businesses are starting to close down and leaving. The homes although beautiful and in great shape, are being sold (I am guessing the home owners are afraid and want to move out of this town. My boyfriend tells me this is a great opportunity to buy because I can take advantage and negotiate even a lower price but I don't know if this might be too risky of an investment. What do think?

Comments

  • I would be worried if the town is losing population. Is there a reason people are leaving?
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  • I never look at appreciation as something I can eat, so you should not either. But knowing it will happen versus depreciation is another thing. Find assets that will appreciate, not depreciate. You should be able to get a pretty good idea at Zillow how values have changed in the area. Good luck!
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