The thread re properties with 30% + yields on American property in the Rochester / Buffalo area got me doing some research.

So far I have found properties with US agents showing $500 rent per month on a price of $30000.

Can these high yields be true?

To put this in perspective the highest yields Ive ever seen anywhere in the world are 10%.

Why isnt every reasonably well off American not buying 10 of these for a total of $300000 (£150k) any enjoying an income of $up to $90000 pa??????? Beats working.

What dont I know?

Maybe really bad old stock, run down area, remaining useful life left only 15 years. Just speculating, but there are many possible reasons for a 30% yield.

The thread with 30%+ yields was a bunch of lies. There are many liers in the world, why should we even listen to them?

The areas are a shabby. I suspect the useful life of the property is short as you say - they all appear to be slatted timber skins.

I noticed one has to obtain a license (certificate of occupancy) upon purchase to ensure the property is of adequate standard AND DSS RENTABLE. Mmmmmmmmmmm.

Are we saying that yields of this dimension are not possible without a very large catch? (that is my instinct but I like to keep an eye out for opportunites and explore them).

I've have been looking at Buffalo/Rochester for the last week or so.

Buy a house for $5000 and rent it out for $500 pm in Buffalo.

Looks to me that you can buy cheap but with lots of problems. I keep reading about some lead certificate required, I assume it's for the pipes. Cost of replacing before renting would cost a small fortune.

There does appear to be some very nice mutiple let buildings in nice surroundings for around $80000 and renting for $800-$1200 pm gross, after costs that drops a fair bit as I've noticed a lot of landlords pay for heating, water etc.

I'm going to email a couple of yanks to get a bit more information and may pop over and have a look if it's showing possibilities.

You've probably answered your own question why arn't the Americans snaping them up? The cost of buying and cost of ownership of these units (Insurance, management, maintenance, taxes and professional fees) will quickly wipe out any profit on $6k per annum. And no one makes money on capital growth of between +2 and -15% per annum.


There are houses in Detroit for $16k they can't give them away!!!

Pablo Silver or Lead?

Apt that you have answered Pablo Silver or Lead?

I've just found out the lead problem is with the paint. That would cost more than the house was worth to strip and repaint, would be cheaper to burn it down.

Sincerely, do you think Americans are idiots? They would have snapped these deals long ago.

Believe me, American are much better at doing business than Brits. Everything which looks too good to be true in America it actually is.

If you are attracted by the weakness of the dollar, you still need to do lots and lots of research in order to get good deals in USA.

When I first arrived in the US (Florida) An old Columbian guy Victor Hernandez said to me

You're new here be very, very carefull.

"Believe nothing you're told and only half what you see!"

That advice saved me a lot of money, the US is a really tough place to make you're money!

Pablo Silver or Lead?

You do realise the he was really a she, named Victoria Hernandez

Seriously though, that sounds like good advice.

Do you know a place where that advise would not apply?