OMG that sounds so like the little town that I live about 10kms away from. Does it start with M, I know the town I"m thinking of had a Cafe and BB the recently closed down, owners certainly did go weird and were half the reason why the business wasn't a success. It started off OK but turned bad after that.

Sorry won't offer you any advice because I can see positives and negatives to living in a small town. I'm married to a farmer so in a slightly different situation but must say so prefer country living to the city.