Toledo, Ohio is #3 in the nation for buying single family rentals.
RealtyTrac developed a list of the 20 best markets nationwide for purchasing single family rentals by analysing median sales prices and average rental rates for 3-bedroom homes and using that data to calculate capitalization CAP rates and average cash flows.
Why are the Chinese investing in Toledo?
Faced with a looming real estate bubble in their home country, speculators from China are turning to Middle America.
FORTUNE-In March 2011, Chinese investors paid $2.15 million cash for a restaurant complex on the Maumee River in Toledo, Ohio.
Soon they put down another $3.8 million on 69 acres of newly decontaminated land in the city's Marina District,
promising to invest $200 million in a new residential-commercial development. That September,
another Chinese firm spent $3 million for an aging hotel across a nearby bridge with a view of the minor league ballpark.
The investors have framed their purchases as a gateway for further investment opportunities in the Midwest.
The newly sold hotel is about an hour's drive from the Detroit airport, and on its website, the hotel's purchaser,
Five Lakes Global Group, advertises Toledo as a " 5-star logistics region " with access to Cleveland, Columbus, Dayton, Chicago, and Detroit.