Top 10 markets to buy a rental property

In these metro areas, small real estate investors can expect to find great home deals and double-digit returns on their investment, according to RealtyTrac.

Syracuse, N.Y.

mom pop real estate syracuse new york
This Syracuse home, listed at $124,900, has a landscaped backyard, deck and mud room.
  • Median home price: $120,000
  • Median rent: $1,085
  • Return on investment*: 10.9%

With more than 20,000 students returning to Syracuse University's campus each fall, there are a lot of opportunities for real estate investors to make money in this market.

The university keeps the economy steady here, but slow population growth -- beyond the annual influx of college kids -- has kept home prices low.

Related: Best advice for homebuyers and sellers

For example, this well-kept three-bedroom with a big backyard and deck is on sale for just $124,900 -- about $90,000 below the national median home price.

For further information: Trulia

Source: RealtyTrac and RentRange.
*Return on investment is also known as gross rental yield, which is the percentage of profit or loss from an investment that is calculated by dividing the annual gross rental income by the purchase price or market value of the property. Ratings were calculated by comparing gross median rents (the return on investment before accounting for taxes, maintenance fees and other costs) for three-bedroom homes to median home price. All of the markets were relatively strong economically, with unemployment rates below the national average.
  @CNNMoney - Last updated September 30 2013 07:32 AM ET

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