10. Phoenix
2018 condo home value: $151,500
Rent growth: 12.4%
Rental yield: 9.5%
With more than 18 million visitors annually, Phoenix might seem like one of the best places to invest in a vacation home. It’s also among the best cities to buy a condo to rent.
With rents averaging $1,195 monthly, expect a gross operating income of $14,340 annually. Even after operating expenses of $5,000 to $11,500 — they’ll be on the high end if using it for an upscale vacation rental — there’s still a tidy profit to be made.
