Looking for Investment Advice in St. Cloud, MN

[Ra B.]

Hello Friends,

Looking to purchase a portfolio of 4 apartments in St. Cloud. All are low-income families but cap rate is 7.50% and cash-on-cash is 10%. 

It is 40 year old property. The original seller bought it in foreclosure 2 years ago. When I asked him about taxes, he says it is lumped with rest of his portfolio.

How do I verify his income and expenses? Is buying in St. Cloud with low-income low credit tenant good idea? I live in Chicago so a property management company will manage (I have identified the management company). 

-Rab