Buffalo/Rochester, New York Property

[segsoha]

I have come across a property for sale in Rochester, New York which looks like a good deal. The following are the details

A 4 family property with separate utilities, broken down into the following:
Apt. 1 = 2 bed.Rent: $500.00
Apt. 2 = 1 bed.Rent: $350.00
Apt. 3 = 2 bed.Rent: $500.00
Apt. 4 = 1 bed.Rent: $350.00
Total Rent: $1,700 per month. (It is currently tenanted for 1 year. It is covered by the US social welfare system, so the rent is guaranteed to be paid.)

Purchase Price - $60000
Legals, Property Tax, Insurance etc $10000
---------
$70000
Existing Rent (1 yr lease) @ 1700 $20400
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Yield 29%


I have seen similar yields in Buffalo. I am wondering if anyone has any experience or comments on this deal or on buying property in Rochester or Buffalo ?

 

[F. Kruger]

From 'Moveable Feasts' by Sarah Murray

Buffalo's economy went into decline in the 1950s and by the 1970s residents were leaving the city in their droves. The population has shrunk from more than half a million in the late 1950s to 290,000 today. City officials and business leaders are exploring Buffalo's potential to become a biotech centre. But biotechnology is an invisable industry, hidden within the walls of pristine labs and squeaky-clean processing facilities. None of the noise, smoke and commotion that inspired the guidebook (New York: A Guide to the Empire State - 1940s) authors will ever return, even if Buffalo's fortunes do.

The above quote was in relation to a chapter on the wheat industry which kept the city alive for so long.