MFR in Chicago and surrounding ‘burbs

[Account Closed]

I’ve been lurking on these forums for a long time and I think we’re ready to begin investing within the next year. 

We are looking to invest in MFR in Chicago and the surrounding burbs. Our criteria is as follows:

A/B class

Minimum triplex

Property will appreciate over time

will easily resell if need arises 

generates some cash flow after all expenses including property management

What areas should we be looking at? We have around 200k to invest. 

[Henry Lazerow]

@Frank S. overvalued? Many of the really hot markets such as parts of FL, CA, etc. have seen a price drop in last month but chicago A/B multiunits have not seen any price drop (we also never saw the crazy appreciation of some areas). It's extreamly unlikely we see prices in A/B areas of chicago fall especially in the 3/4 unit space which cannot be easily or affordably built creating very limited supply that has been falling year over year due to single family conversions/tear downs. Agree that transaction costs are high in real estate and you should only buy if plan to hold 5+ years or do a value add where you create equity.