Cap rate in Rochester, Pennsylvania ?

[Peter Albert]

Hi,
Excellent forum, lots of great advice here !

Would very much appreciate some help evaluating an off market mom & pop portfolio, mix of SFR's and duplexes, in northeast Rochester, Pennsylvania. Asking price is $200k, gross annual income is $46k, with expenses that meet the 50% rule, making the cap rate about 11%. Please let me know if this is a good cap rate for this area. Thanks.

[Randy Donatelli]

I am actually right up the road from Rochester, PA and it is an area in which I have considered investing because of the cost of housing there, believe it or not 11% cap is OK I would actually expect a little higher for the areas in which you talked about. What I will tell you is about all of those areas as well I would want to see where it is and see the house before purchase. In all of those areas and you can buy a house for $6k and you can also buy a house there for $150kk, hope that helps.