Where Are the Real Home Bargains? Not Where You Think!

What if you could buy a house for $25,000 in a neighborhood that wasn't a battle-scarred slum and rent it out for $750 a month as soon as the ink was dry on the deal? Where are these deals that let you recapture your investment in just three years and from then on enjoy a steady monthly income from the property?

If you said Phoenix, Las Vegas or south Florida, you'd be wrong says Paul Habibi, a principal of Habibi Properties and real estate professor at UCLA Anderson School of Management.