IRVINE, CA-A mere three western markets made RealtyTrac's list of 20 Best Markets for Single-Family Rentals, reports the locally based supplier of real estate data. Las Vegas, Phoenix and Ogden, UT, were on the list, which was dominated by eastern and mid-western markets in Florida and Missouri.

According to Daren Blomquist, VP of RealtyTrac, who authored the report, “Buying single-family homes as rentals that actually generate good monthly cash flow has become more difficult over the past year as institutional investors crowded into the market, snapping up tens of thousands of properties in 2012 alone. But there are still opportunities for the more conservative, individual investor to buy rental homes that generate a healthy return on investment—it often just takes persistence and willingness to pass on bad deals. The top 20 markets we selected represent the best chance to buy rental homes that generate good cash flow, but opportunities are available in most markets across the country given the combination of relatively low prices, low interest rates and a strong rental market.”

As GlobeSt.com reported last week, nearly 1.5 million US properties were actively in the foreclosure process or bank-owned in the first quarter of 2013, up 9% from the Q1 2012 but still down 32% from the peak of 2.2 million in December 2010, according to RealtyTrac's first-ever US Foreclosure Inventory Analysis. The report also shows that California had the second-largest decrease in foreclosures among the states during the quarter.

Memphis tops the list of best markets for buying single-family rentals, while Ogden, UT, rounds out the bottom.