Value-Add Projects in Secondary/Tertiary Sub-Markets

Anyone have experience working with smaller, value-add deals in secondary/tertiary neighbourhoods in major cities?

I'd imagine some potential hurdles, at least compared to stronger local markets, would be less sophisticated owners, less demand, less DD material, less comparables, longer project timelines, etc.

At the same time, I'd also imagine that a lot of the smaller deals in these locations would fly under the bigger players radar, potentially leaving really good opportunities left untapped.  Additionally, you'd be dealing with mostly private guys (many of whom I think is fair to assume aren't professional RE investors) and local brokers, so maybe there'd be a greater degree of information asymmetry, which could bode well if you know what you're doing.

Any input from people who've worked on these deals, either personally or professionally, would be appreciated.  Thanks in advance!

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