Buying a place for 200k or renting?

[Layla Rahm]

My husband and I need to move to Chicago for 2-3 years. Our dilemma is whether we should buy something for around $200k, or rent for the 2-3 years, rent being $2500-3000. I realize that buying may make more sense, but in the area we are looking to buy which is right by the University of Chicago, the homes that we are looking at purchasing are all around 200k, but they may not go up in value at all in 2-3 years. We would however be open to renting the place out after we move. And I know we would get at least $1500-1800/month if we rented the homes we are looking at buying. We also currently we own 5 other rental properties in Atlanta, which are being managed by my father, so having another rental property is attractive. But Chicago is somewhere where we would move away, and never come back.

We are also not sure if we should pay cash for the 200k, and later do a cash out refinance if we need the cash, or if we should get a mortgage for some of it initially. We don't need the 200k in the next few years so buying cash would not be an issue.

thank you for any advice or guidance.