Besides their proximity to an improving area I'm not sure if they're good places to look or not.What are your favorite (or not) Chicago neighborhoods for investing right now?

Looking at Multi-Family homes where to start he will live in on unit an landlord the rest while we improve the property, then move on.Option 2.

If the business entity taking out the loan is properly set up (no humans anywhere in the ownership chain), the acquiring entity's credit alone may be enough to put the deal together if the entity has a strong enough credit profile and financial statement, and sufficient cash is available to balance the lender's maximum LTV against the purchase price.Just a starting point ...

Finding a building where you can raise the value with general improvements or with better management is going to be the best suggestion I can give, but making the first step and getting "into the game" is the most important step.

We did quite a few improvements. 

Are you looking for a turn key property that won't need any work, or are you looking to add value through buying something that you can improve?

Adjusted cost basis is cost + eligible improvements. 

To get a better backround on me please feel free to check my previous posts or my profile.

Also, I don't necessarily subscribe to this, but I do know a lot of older MFR investors just keep their rents lower than everyone else and do minimal improvements after they retire.

Most banks want to be sitting at a 80-85% LTV so we would need a good appraisal to just cash out the fill 70-80K you need for improvements.