[lumberjack]

Why go for less populated areas? It seems to me that that would increase the risk since it will is easier for a small town to start dropping in population as opposed to a big town. Also land is cheaper and there is more room for development so less people need to rent.

[jackcosgrove]

Not small towns, but medium sized cities. Margins are higher in places like Columbus, Ohio compared to Los Angeles because property is cheaper.

Here is a heat map for rental returns. http://www.realtytrac.com/content/news-and-opinion/best-and-...