Can anyone name cities that have relatively low average monthly mortgage payments but relatively high rents?

Answer 1

With just one good answer to this question, you and all your descendants should be set for life!

Probably the way to achieve what you're thinking of is to
1 Buy low, when interest rates are low also.
2 Give a big enough down payment, so the market rent can cover, or almost cover the mortgage right now.
3 Suck up a few years of no positive cash flow, but building equity, and maintaining the property.
4 As time passes, rent values rise, mortgage stays the same..... now comes positive cash flow.
5 When good deals hit elsewhere, sell this one, do tax exchange to defer capital gains tax and do it again.

Answer 2

Look at smaller towns in the south and midwest. Stay away from the big cities, especially near the coast, until the market cools from all the speculators out there looking to flip properties.

These homes are out there, but are difficult to find. We paid 56K with a 750/mo solid rental (2mo vacancy in the last 4 years). With 10% down, we are netting about $370/mo including PITI, maintenance, and management. The current value is over 85K.

Get in touch, make friends with, local realtors so you can catch pre-foreclosure homes. There should be multitudes of them soon.
***Follow the Humvee to the next good sale!***