Newbie from Australia looking to invest in the US

[Keegan McGlynn]

I am a university student from Australia who is looking to buy a multifamily property in the Ohio, Pennsylvania, Upstate New York region within the next few months. I originally was going to do a development here in Australia, but a combination of factors have instead lead me to buying a property in the US instead. I am looking to buy and hold cash flowing rental properties.

Before I make an investment I am learning more about the relevant markets. I look forward to hearing from others who invest in these markets and would also love to hear from any of you if you have suggestions or can suggest alternative markets to look into. 

One question I have is how are the cap rates so high in some places in the US? In Australia pretty much the whole country is more like LA, where gross rental yields sit at roughly 4% and property is very expensive, yet some regions of the US seem to have cap rates above 10% and have houses for under $100k. I am aware that growth in these regions is low, or in some cases negative, but still it seems odd.

Thanks guys, I am looking forward to being more involved in the BP community in the future,

Keegan