I am aware that there are areas in the USA where you can buy a
property which returns over 20% per year in rent. They are usually
found in fairly small towns and way out places.

I am looking for the website or contact details of an American agency
which sources and/or sells residential property of this nature, deals
with the management and renting, perhaps arranging finance aswell. In
the UK they are various companies which source high yielding
properties although I havent been able to find any in America...

Please note the properties must yield in excess of 20% per year in rent..

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Clarification of Question by altozar-ga on 06 Jul 2005 07:30 PDT

Please note I am looking for a number of leads - there must be a large
number of companies that find these kinds of properties for people and
I would like to hear of at least three of four.

It could be difficult to find such commercial property.
But there is another approach: 
suppose more easy is to find some rent object with yield or cap rate
12% and local bank  agrees to provide mortgage loan with LVP( Loan to
Value Ratio) 75% with USD interest rate (and amortisation) 6.5% for 20
years.
For your own equity capital 30'000 USD the bank loan will be 90'000
USD and yearly debt services payments will be 8052.3 USD ( mortgage
constant for this bank credit is 0.08947).
Your max. price of property is  120'000 USD which you can afford with
25% percent of your own equity capital (bank gives the rest 75% ). 12%
cap rate or yield brings 14'400 USD of NOI (net operational income).
Minus 8052.3 USD of yearly debt service and you will get Cash Flow
(money to your pocket) 6347.7 USD = (14400 - 8052.3) or 21.159 % (
equity yeild or equity cap rate). Less cap rate, let say 11.7% and you
will get less 20% of equity yield.

One precoation: see carefully that NOI - net operational income is not
less than 14400 USD, you should undestand that it must include not
only gross rent (revenue) but should be decreased by yearly expences
(for managing and rennovation, taxes and et cetra) and if you
calculate NOI on assumption of awaiting rent income it must be also
decreased with possible vacancy of premises.

What is interesting with Swiss bank mortagage credit, sometimes if it
was already given to local person on favorable conditions let say 10
years and LVP of 80% and  he must pay only fixed interest - only 4.5%
of credit per year and no amortisation so the body of credit remains
the same and  credit could be prolonged on the same conditions at the
end of period with new owner and he sells such commercial property 
with mortgage credit  then the equity cap rate could reach even 27-28%
percent (!). But it's very rare offer at the market and usually
requires more equity capital - starting from half of million.


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