Where to find high cap rate apartments in class B-/C+ areas

[Ki Lee]

Hello BP. 

I'm a "green investor" from Orange County CA and I'm looking to do a 1031 exchange for my 3plex in Chicago for a property that can cash flow better.   I'm doing research on different MSA to narrow down to 1 or 2 areas to focus on. I've been looking at net migration/job growth/unemployment/job diversity/vacancy rates, etc.  

I've considered LA/OC/IE, but the cap rates are so low and it's very hard to find any property that will cash flow in my price range that's not in D/F class neighborhoods.  I'm not really ready to take on war zones. Plus the negative net migration and unfavorable landlord environment in CA is not very attractive.

My goal is to buy a C class value-add building in B-/C+ neighborhood that has 8% cap rate for $1M-$1.5M with 25% down.  I want to purchase for cash flow, and not for appreciation potential.  The main goal is forced appreciation rather than market appreciation.  

Is this at all feasible in this hot market without stepping into a war zone?  Where do I have the best chance of accomplishing this?  

I would appreciate any suggestions.