Cap rate in Rochester, Pennsylvania ?

Question

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.

Peter Albert · Answer

Hi @Randy Donatelli

Thanks for info, that is helpful.

If you don't mind, I'd like to please discuss this off-market deal with you, I'll send a colleague request.

Randy Donatelli · Answer

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.

Peter Albert · Answer

Hi Chuck,

Thanks for trying to clarify, but I really am asking about Rochester, Pennsylvania, which is located 25 miles northwest of Pittsburgh, part of the Pittsburgh metropolitan area. Some of the neighboring towns are Freedom, New Brighton, Beaver Falls, Aliquippa.   Rental property there seems to have a nice rate of return.  I've found what appears to be a great off market deal from a very motivated seller.  I'm out-of-state and not familiar with that area, so would appreciate any help.  Thanks.

Chuck VanDyne · Answer

I can help you with this if you are referring to Rochester, NY. I have never heard of Rochester, PA.