Best Location in Central Ontario for Rental Property

I have been thinking about buying a rental property in Central Ontario and wanted to get some input on which city/town people would suggest would be a good location. I would like a location within 1.5 hour drive of the GTA and with a good rental population (university town, high employment, etc.). I was thinking Waterloo may be a good location given you can still purchase a fully detached house for under $400k but I have heard they have strict rental regulations. What city/town do people suggest for rental properties? I am fine with either a condo, townhouse or fully detached home. Budget, ideally under $400k with a good potential for the property to increase in value over time. Thank you.