Narrow focus - I know the zip codes I wanted to purchase well.

You may hear different from some here, but my advice is NEVER purchase something you don't lay eyes on. 

Quote from @Dylan Webb: Hello, here's my situation:My wife and I own several properties separately.2 of the single family homes combined we have conservatively $150,000 in equity ($90,000, $60,000) I want to use one of these as collateral for a small loan of $30,000 to put down on a high cash flowing property OR have a lender finance the whole venture at a purchase price of $160,000.

Great questions - a lot of our borrowers will tap the equity using a refinance in order to purchase their next investment property.Feel free to give me a shout anytime, happy to help!

What does everyone think is the most profitable area to purchase in?

We have some capital and are looking to possibly purchase a small hotel.

What's the purchase price? 

Are you wanting to purchase in the same area of Chicago?

Reno Scenerio Off Market Purchase Price - $185k ARV = $315-335kReno - $55-65kHolding - $10kClosing both ends - $25k= $335 , $315-$285 =$30-50k gain  As-IS Scenario Purchase - $185kSale Price on MLS :$225- $235kClosing both ends - $20kHolding - $4k= $235 - $209 =$16-$26k gainIn both scenerios I’ll be 1031ing it into a new investment.

Gain is your net sales price minus your adjusted cost basis (purchase price plus capital improvements minus depreciation).