Foreigner Investing in USA apt bldg

[Sheena Mdali]

Hi all,
I'm new here. I'm seeking some advise on USA property investment.
I am foreigner, (singaporean) and I just bought a multifamily apartment bldg with 6 units in Rochester NY, 100% tenanted with management in place.
This is our first investment in USA.

Total gross rents is $3100 p/mth. Agreed purchase price is $101k for it and its due for closing next month... we bought it without any mortgages as we could not find any banks in US giving loans to foreigners.
We need to know if this a good investment? We are little worried that if we are paying too much or above market price as we are unsure of the area and any valuations or appraisals were not done on this property.
Its like row unit with individual entrances.
Is it ok to go ahead with closing without going to Rochester to chk out the house?

Landlord pays for hot water and waste removal.
Agent said that Net yield is ar 25% cap.
Taxes $5k per annum.
Bldg comes with new Cert of Occupancy but the city council.

Sheen
Singapore

[Jon Holdman]

IMHO, Absolutely not. I would NEVER buy a property without seeing it and the area with my own eyes.

The numbers may be OK. Almost certainly there is some rehab work needed. Average rents of $500 a month justify about $25K per unit. You're paying about $17K, so you may have some room to do some work.

Landlord will pay for a lot more than hot water (and water, I assume) and trash. Does hot water mean hot water heat? That can be a killer in a colder climate like Rochester. You will have insurance, property management, maintenance, capital (e.g., roofs and boilers and other big items), vacancy, legal costs, CPA costs (you'll have to file taxes in the US and in NY.)

What's rental demand like in that area? Few vacancies that are filled quickly? Many vacancies that require rent concessions to fill?

What kind of tenants will you get there?

What's the area really like? I think you cannot answer this because you've not been there. Do you have a trusted association, one who's totally unrelated to this transaction, who can go check out this area and the property?