07/27/2012 01:01 pm ET

Turning Foreclosures Into Rentals: 10 Cities With The Hottest Markets

A growing number of savvy investors are profitting off of the volatile housing market by buying foreclosed homes from big banks and turning them into rentals.

With an excess of foreclosed homes on the market and the demand for rental homes skyrocketing, the business of flipping foreclosures into rentals is booming and is projected to be a $100 billion business this year, according to a report by CoreLogic.

Want in on the action?

RealtyTrac, an online marketplace for foreclosed and defaulted homes, released a list of the 10 best markets for foreclosed properties based on the foreclosure sale discount (or how much cheaper the foreclosed property is than non-distressed homes on the market), average foreclosed home values and the volume of bank-owned unsold homes in the area.

Here are the 10 top cities for investing in foreclosed properties.



Top 10 Cities For Foreclosure Investments