Yes some parts of the US are overpriced but some are the exact opposite. Particularly the smokes stack cities in the North. Some areas haven’t had appreciation for 15 years and are only now showing signs of recovery that’s where I am putting my money.

I have just returned from a property buying trip in the Buffalo Niagara area and have picked up four properties all yielding at least 30%.

I just went to contract on a triplex in a good area of Rochester which will yield 46%.

Anyone interested in more info on this subject let me know.

Happy Investing, Dave

Dave

Would you please provide some further information

I have done some research on buying to let in this area of the USA. I cannot calculate yields anywhere near yours. I am getting single figures for net yields.


Regards

MT

MT,

Yield quoted was gross not net.

Real samples of my US potfolio in US $

City of Buffalo Duplex paid 26.5 K spent 7k renno now renting for 950 per month

Cityt of Buffalo triplex paid 45K spent 5500 renno should rent for 1300 per month

Rochester triplex paid 25.5 K will spend 19K renno should rent for 1775 per month

Net is obviouly lower I use 40% property expenses.

If you are looking in the suburbs prices higher yield lower.

There are many deals like mine my colleauges also buying on similar figures.

Dave

i have been looking at the rochester market just recently do you need to go to look for yourself or do you think an ajent can be trusted tofind and buy the right property.
An ajent emailed me some propertys with muliple familys the properrty sell for about $30k and gets 1100$ a month rent.
The only property i have ever bought is the house i am in now and would like to get into the property game with little money thats why the rochester market appeals the propertys are very cheap with high rents makeing it a low risk you pay 30$ 15K i cant see house prices going much lower.
Does any one no where i can get mortgages to buy multiple house in america.
please email me.p_j_carter2@tiscali.couk

Go to

www.realtor.com

Type Rochester in NY

You will see that the price of houses starts at $2500 (two thousand five hundred)

I doubt that anybody would accept to live in the cheaper houses, let alone pay $1100/moth

The cheapest more modern house (built 2001) seems to be (for $49000)

http://www.realtor.com/FindHome/HomeListin...mp;lnksrc=00002

My advice: look in the desireable states like Florida, Arizona, California, Colorado or even parts of Nevada, new Mexico or Colorado.

Looks like yields of about 12% for Buffalo which is still good.

This property is both up for rent and for sale.

Link for purchase:-

http://www.realtor.com/Prop/1074383311

Link for rental:-

http://rentals.realtor.com/Prop/1078846687

This shows some stats like shrinking population, but the decline seems to be bottoming out.

http://quickfacts.census.gov/qfd/states/36/3611000.html

with competitive mortgages and a buy one get one free dollar, it is tempting.......feel a trip over to n y state coming on...

I think unemployment is much higher than normal and was probably very high during the 90's, hence the exodus and probably way the place has gone through house price reductions. I bet you will end up with significant void periods when trying to find a tennant, bringing down the yield.

has anyone got any more insight about the fundamentals?

Ive been considering these investments.

Holding back so far due to the following;

1) If such high returns (the highest yields Ive ever seen in the World) why have'nt canny US LLs bought them up quietly?

2) Assuming the figures are correct there MUST be a reason. I have a hunch the ongoing maintenance costs must be very high and the tennants very transient hence the apparent high yields to attract investors.

3) Lets assume the yields are genuine. What happens next? Will investors pile - in and therefore drive yields down?

4) If investors pile - in wont the few decent tannants be hoovered up by the investors on the ground, leaving the dross to us Brits?

5) There are many places in the World that have / have had these conditions, for example Northern UK towns, E German cities - WHAT IS IT THAT MAKES YANKS WANT TO GIVE LLs SO MUCH MORE RENT THAN THE REST OF THE WORLD?

Let me know if you decide to visit.

I think you are correct on the high void tendancy.

People say this area can only go up / improve - Im not so sure, afterall it is the low income groups will be hit hardest by the current SUB PRIME LENDING disaster as credit availability for them dries - up both on the secured and unsecured front causing thier cashflow to be jolted.


Having said all this, Im not averse to contrarian investing. I recall people making a lot of money by buying in coastal Croatia just after the Bosnian war - everyone thought they were mad. Within 5 years they quadrupled thier investment. Similarly most thought Ireland was a basket case less than 10 years ago.

The Yanks are the best investors on thie Planet, the fact that they do not grab all the properties in likes like Rochester and Syracuse should tell you something.

There are some good deals in USA but it takes a lot of homework to find them.

I have been researching the area for a few weeks and was planing a visit and my observations are;

There are maintainance problems with most of the cheap high yielding houses. They are all about 100 years old, built of timber and with the harsh winter conditions require alot of TLC.

There are also problems with the paint which can be lead based and would need expert advise to determine how to rectify.

Gross yield can be high but net yields can be low. Some of the rentals include all utilities. And with property maintainance high if you have to visit a couple of times because of problems, that yield could quickly turn negative.

I have been in contact with a couple of estate agents and although they both say renting in most areas is possible you will need a very good rental managment team and this is the major problem facing BTL in Rochester. Neither one would recommend anyone and suggested I contact several and speak to them myself and good luck

Looking at the crime rate, it is one of the highest areas in the USA, with loads of housholds on social benefits this would be the the renting areas most of the cheap houses are. A stong management team is even more critical.

I have spoken to someone who has invested in the area and they confirmed the worry about renting agents. He also told be a horror story of a family who trashed a rented house and it has been for sale for $1 and no buyers.

I am sure there a good yields to be made but the managment problems are putting me off. It's not like over here, just popping up the M1 to resolve a major problem.


I'm not giving up yet though.

$1 house would be OK.

You are calling it right here. A couple of friends have rental houses in South Atlanta that cost 60K but rent for $900 or so a month. Problem is on going maintenance etc. Seems like the ones that do well rent lower $500-$600 and make the renter responsible for repairs. Then as the area gets gentrified they then sell for the capital gains. There is also still a large group of US landlords who will not do business in coloured areas which leaves opportunity for ones that will..........

I am looking to invest in rochester and buffalo and finding it at bit hard to research any help please thanks

So you think that it is safer to do it from OK? Why? Because they cannot carry guns over the Atlantic?

I repeat, Americans are the best business persons in the world. If they cannot extract money from something then nobody can.

What is the difficulty?

I gave you all the relevant information. You can find tons of Estate Agents in the area.

Or you want to tell you EXACTLY which house to buy?

Maybe Dogbox can do that.

I know where a house is going for $1, only a £2000 sourcing fee and it's your's

Let's buy an entire quarter in Rochester.

And call it the "House Price Crash Quarter". Everybody who feels frustrated about housing in UK can go there and do whatever his/her heart desires.

I offer $10 to start the housing fund.

i have got an agent who has sourced some properrty i now need a property managment firm that is the tricky part finding a good one.

Think I'll stick to land in Berlin and NE Brazil (beachfront land puts on a lot more capital growth than off - plan developments and is far easier to resell than off - plan which has hundreds of competitor developmets in same area) for my next investments.


Also looking at auction in Scotland where property is under £30000.

You never fail to put a smile on my dial

The squatters in Brazil are looking forward to living on your beachfront land.

No I am over there a lot but would not recomend it for someone living here unless they could find a local manager. Although as mentioned you cannot really go too wrong with a very cheap house in an up and coming area if the land value exceeds the price you are paying. Rent is just icing on the cake.

There really is opportunity in the US though, more ooportunities than people to exploit it in some areas.

Hi Bardon,
Im planning a similar trip in 2 months time, have never bought over seas but im hoping to get good deals on cash buys. How did you get on with finfing property managers? have you got tenants easily? Any tips would be appreciated.

I live and buy in Scotland, from what ive seen the auctions are not quite what they seem. They will tell you a guide price of £30,000 but in reality this is to drum up loads of buyers to come along and they end up going for much much more! I have got better deals just getting in quick with estate agents, using email and text alerts.

Thats not to say you cant get a good deal, let me know if I can help you at all.