20 Best Cities to Buy Single-Family Rentals

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One of the biggest driving forces of the housing recovery has been deep-pocketed investors snapping up single-family homes to rent out. But that works better for the corporate buyers, not always the individual investors. Still, it can be quite lucrative if you have the money.

According to online foreclosure marketplace RealtyTrac, there are still plenty of cities out there that offer ample opportunity for everyday buyers to purchase single-family homes and rent them out at a decent profit. These 20 cities are the best for buying single-family rentals.

"Buying single-family homes as rentals that actually generate good monthly cash flow has become more difficult over the past year as institutional investors crowded into the market, snapping up tens of thousands of properties in 2012 alone," said Daren Blomquist, vice president at RealtyTrac. "But there are still opportunities for the more conservative, individual investor to buy rental homes that generate a healthy return on investment. It often just takes persistence and willingness to pass on bad deals. The top 20 markets we selected represent the best chance to buy rental homes that generate good cash flow, but opportunities are available in most markets across the country given the combination of relatively low prices, low interest rates and a strong rental market."

Click through the gallery below to see the 20 best cities to buy single-family rentals.

Note: Financed cash flow refers to the monthly profit you would make from renting out a single-family home for which you have a 20-percent down mortgage with a 4 percent interest rate; cash purchase cash flow is the profit if you bought the home in cash and have no mortgage payment.

21 PHOTOS
20 Best Cities to Buy Single-Family Rentals
See Gallery
20 Best Cities to Buy Single-Family Rentals

Median sales price (3-bed): $72,605
Average rent (3-bed): $1,047
Estimated monthly mortgage payment: $277
Financed monthly cash flow: $351/month
Cash purchase cash flow: $628/month

Find homes for sale in Memphis, Tenn., or search listings in your area.

Photo: Wikimedia Commons

Median sales price (3-bed): $63,240
Average rent (3-bed): $907
Estimated monthly mortgage payment: $242
Financed monthly cash flow: $302/month
Cash purchase cash flow: $544/month

Find homes for sale in Saginaw, Mich., or search listings in your area.

Photo: Wikimedia Commons

Median sales price (3-bed): $67,617
Average rent (3-bed): $963
Estimated monthly mortgage payment: $258
Financed monthly cash flow: $320/month
Cash purchase cash flow: $578/month

Find homes for sale in Toledo, Ohio, or search listings in your area.

Photo: Wikimedia Commons

Median sales price (3-bed): $75,357
Average rent (3-bed): $1,070
Estimated monthly mortgage payment: $288
Financed monthly cash flow: $354/month
Cash purchase cash flow: $642/month

Find homes for sale in Ocala, Fla., or search listings in your area.

Photo: Wikimedia Commons

Median sales price (3-bed): $115,000
Average rent (3-bed): $1,575
Estimated monthly mortgage payment: $439
Financed monthly cash flow: $506/month
Cash purchase cash flow: $945/month

Find homes for sale in Las Vegas, or search listings in your area.

Photo: Wikimedia Commons

Median sales price (3-bed): $91,950
Average rent (3-bed): $1,248
Estimated monthly mortgage payment: $351
Financed monthly cash flow: $398/month
Cash purchase cash flow: $749/month

Find homes for sale in Palm Bay, Fla., or search listings in your area.

Photo: Wikimedia Commons

Median sales price (3-bed): $84,000
Average rent (3-bed): $1,132
Estimated monthly mortgage payment: $321
Financed monthly cash flow: $358/month
Cash purchase cash flow: $679/month

Find homes for sale in Atlanta, or search listings in your area.

Photo: Wikimedia Commons

Median sales price (3-bed): $90,000
Average rent (3-bed): $1,198
Estimated monthly mortgage payment: $344
Financed monthly cash flow: $375/month
Cash purchase cash flow: $719/month

Find homes for sale in Jacksonville, Fla., or search listings in your area.

Photo: Wikimedia Commons

Median sales price (3-bed): $94,000
Average rent (3-bed): $1,225
Estimated monthly mortgage payment: $359
Financed monthly cash flow: $376/month
Cash purchase cash flow: $735/month

Find homes for sale in Deltona, Fla., or search listings in your area.

Photo: Flickr/chenines

Median sales price (3-bed): $75,102
Average rent (3-bed): $969
Estimated monthly mortgage payment: $287
Financed monthly cash flow: $294/month
Cash purchase cash flow: $581/month

Find homes for sale in Springfield, Mo., or search listings in your area.

Photo: Wikimedia Commons

Median sales price (3-bed): $102,000
Average rent (3-bed): $1,254
Estimated monthly mortgage payment: $390
Financed monthly cash flow: $363/month
Cash purchase cash flow: $753/month

Find homes for sale in Tampa, Fla., or search listings in your area.

Photo: Wikimedia Commons

Median sales price (3-bed): $108,000
Average rent (3-bed): $1,320
Estimated monthly mortgage payment: $412
Financed monthly cash flow: $379/month
Cash purchase cash flow: $792/month

Find homes for sale in Port St. Lucie, Fla., or search listings in your area.

Photo: Flickr/sylvar

Median sales price (3-bed): $108,000
Average rent (3-bed): $1,316
Estimated monthly mortgage payment: $412
Financed monthly cash flow: $377/month
Cash purchase cash flow: $790/month

Find homes for sale in Orlando, Fla., or search listings in your area.

Photo: Wikimedia Commons

Median sales price (3-bed): $112,396
Average rent (3-bed): $1,369
Estimated monthly mortgage payment: $429
Financed monthly cash flow: $392/month
Cash purchase cash flow: $822/month

Find homes for sale in Phoenix, or search listings in your area.

Photo: Wikimedia Commons

Median sales price (3-bed): $95,000
Average rent (3-bed): $1,141
Estimated monthly mortgage payment: $363
Financed monthly cash flow: $322/month
Cash purchase cash flow: $685/month

Find homes for sale in Detroit, or search listings in your area.

Photo: Wikimedia Commons

Median sales price (3-bed): $93,000
Average rent (3-bed): $1,107
Estimated monthly mortgage payment: $355
Financed monthly cash flow: $309/month
Cash purchase cash flow: $664/month

Find homes for sale in Lakeland, Fla., or search listings in your area.

Photo: Wikimedia Commons

Median sales price (3-bed): $89,318
Average rent (3-bed): $1,055
Estimated monthly mortgage payment: $341
Financed monthly cash flow: $292/month
Cash purchase cash flow: $633/month

Find homes for sale in Kansas City, Mo., or search listings in your area.

Photo: Wikimedia Commons

Median sales price (3-bed): $85,400
Average rent (3-bed): $1,004
Estimated monthly mortgage payment: $326
Financed monthly cash flow: $276/month
Cash purchase cash flow: $602/month

Find homes for sale in Dayton, Ohio, or search listings in your area.

Photo: Wikimedia Commons

Median sales price (3-bed): $88,250
Average rent (3-bed): $1,037
Estimated monthly mortgage payment: $337
Financed monthly cash flow: $285/month
Cash purchase cash flow: $622/month

Find homes for sale in Syracuse, N.Y., or search listings in your area.

Photo: Wikimedia Commons

Median sales price (3-bed): $98,281
Average rent (3-bed): $1,152
Estimated monthly mortgage payment: $375
Financed monthly cash flow: $316/month
Cash purchase cash flow: $691/month

Find homes for sale in Ogden, Utah, or search listings in your area.

Photo: Wikimedia Commons

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