Which cities in the US have the best rental properties?

[Dan G.]

Hello, 

My name is Dan and I'm new to Bigger Pockets and to real estate investing. There aren't many great deals in my area so I'm thinking about investing out-of-state and using a property manager. Where in the US can I get the highest possible cap rates for single family homes (preferably 3/2/2) without having to buy in bad neighborhoods that would have a lot of evictions/vacancies and other headaches? CBS is a must-have (no wood frames). Also, I would rather have a high cap rate than high appreciation on the properties. To me, appreciation is too speculative to give up cap rate for. I am willing to buy single family homes pretty much anywhere in the US as long as the cap rates are high, the construction is CBS, the neighborhood is decent (low crime/safe) with reliable tenants willing to live there, and the properties can be managed by a good, local property manager. Any suggestions as to which cities/zip codes can give me all this with the highest possible cap rates? 

Thanks! 

Dan

[Len Grosso]

Are you including a possible deflation in the house value in your calculations?

Some of the high caps are in areas that also experience high value swings when housing gets challenged.