This is nutso. Plain crazy nutso. Call it Zillow in Wonderland instead of Alice in Wonderland.

Zillow – who you know has a sterling reputation for accuracy <cough cough> has struck again.

In this installment of Zillow-Does-Real Estate, they give their opinion as to what the best rental markets in the country are. (I’ve included the entire article below in case you’re curious.)

I call bullsh*t on their “analysis”. Because there isn’t any analysis. And because they demonstrated in black and white in the article that they are completely clueless when it comes to single family rentals.

Yet they feel qualified to determine the best markets.

Pretty funny actually.

The first issue with the piece is that for the #1 Market, Oklahoma City, they give it their #1 ranking because, and I quote “at $650 per month, it rents for about $250 a month more than a mortgage payment”.

That statement is a typical rookie mistake.

Because a lot of times rookies do the math that way – and forget that insurance, vacancy and repairs and maintenance all need to be included when you’re computing net cash flow.

So they blew it – and demonstrated that they don’t know anything about rentals.

The only thing worse than Zillow getting it wrong is watching all the people posting the article on facebook to show why you should invest in their area.

They’re clueless as well. And they’re probably people you should avoid taking real estate advice from.

The second reason I call BS on this article is because it’s just plain WRONG. As usual, Zillow aggregates a bunch of “big data” and makes a conclusion based on the results.

When in reality the result is meaningless.

How do I know?

Look again at the #1 Market, OKC.

Do you really believe that the best market in the country, where zillow says that investors are “making the most profit every month”, only clears (with their math) $250 per month?

That’s just plain silly.

In my market I’m buying 3/2 brick houses for between $65,000 and $70,000 and renting them for $1100 – $1200.

Or almost TWICE what they get of for rent in OKC. And I’m in the best school district in the state.

So my net cash flow blows OKC away. And my city is not on the list.

Typical zillow.

Here’s the piece from Zillow……

Being a Landlord Is Most Profitable in These 10 Areas

The tough reality for renters around the country: Rent is through the roof. That’s good news for landlords, though. Renting out a home can be a good way to make extra money month-to-month while building equity.

Here’s Zillow’s list of the top 10 places to own a rental property. These aren’t the hottest markets, but they are the metro areas where a small-time investor can count on making the most profit every month.

Zillow’s analysis considered home owners who  purchased their properties in 2009, but it’s not too late to find a cash-flowing rental in these areas.

10. Memphis, TN

According to the listing, the same renters have kept this rental occupied for 15 years, paying a total of $1,000 in rent every month. Payments on the triplex at asking price would be about $358 a month, according to the Zillow Mortgage Calculator.

See homes for sale in Memphis.

9. Indianapolis

This home in Indianapolis has two units with 2 bedrooms, 1.5 bathrooms with hardwoods and new tile.

See homes for sale in Indianapolis.

8. Dallas-Fort Worth, TX

The Dallas-Fort Worth area has a huge variety of real estate — from giant mansions to apartments. This home is all on one level, with a small patio and gardens in the backyard. It’s for sale for $150,000. With 20 percent down, that amounts to about an $800 a month payment, according to Zillow’s Mortgage Calculator.

See homes for sale in Dallas.

7. Tampa, FL

Tampa’s still-soft housing market means you can get an investment property like this one with a payment of only $558 a month.

See homes for sale in Tampa.

6. Rochester, NY

This small home in Rochester has low-maintenance vinyl siding, a newer roof and windows and a two-car garage.

See homes for sale in Rochester.

5. Denver

In Denver, you can get this newer 1-bedroom unit in the city with a payment of about $1,377 a month. It’s on the fourth floor and has high ceilings, big windows and a large closet.

See homes for sale in Denver.

4. Cincinnati

This home has been fixed up since it last sold in January 2013 for $42,500. Now offered at $84,900, it’s painted with an updated kitchen and bathrooms.

See homes for sale in Cincinnati.

3. Tulsa, OK

This investment property priced at $65,000 comes with 3 bedrooms, 2 bathrooms and “lots of attic storage in the garage,” according to the listing.

See homes for sale in Tulsa.

2. Miami-Fort Lauderdale, FL

Rent in Miami is rising faster than almost anywhere in the country. This two-story unit rents for $1,200 a month. Zillow’s Mortgage Calculator estimates the payment on the unit — if you bought it at asking price with 20 percent down — would be $625 a month.

See homes for sale in Miami.

1. Oklahoma City

This 3-bed, 2-bath home in Oklahoma City rents for about $250 a month more than a mortgage payment at its $65,000 asking price.

See homes for sale in Oklahoma City.