Need feedback for my REI plan - esp from Chicago and Dallas investors!

[Sarah Lam]

Hi everyone!

So I've been dutifully reading and researching about REI since I've joined this site. I've mapped out my goals, and would really love to hear some feedback. FYI, I live in San Francisco and can't afford to get started in REI in my area. 2/1 condos in my neighborhood go for $1.1M and rent for 3.5K-4K/mo.

I'm investing in real estate to replace my bonds portion of my portfolio. I want a balance of CF and appreciation; I don't need the income, but would like to be able to reinvest profits into my next property. I'm taking a buy-and-hold approach with small MFR turnkeys, but would consider SFR turnkeys if the numbers were particularly good. In the next 8-10 years, I'd like to acquire 4 properties, one in every major geographic location of the US - Midwest, South, East Coast and West Coast (where I reside). I'm interested in suburbs of major metropolitan areas, so I'm particularly interested in the Chicago and Dallas/Fort Worth areas. East and West Coast areas will require more time for me to save before I enter the market there, so I'm focusing on Chicago and Dallas/Fort Worth markets for now. I will be using property management companies.

Chicago investors - I'm looking at some turnkey duplexes in the South Side. Are there any neighborhoods that are in the process of gentrifying? Any neighborhoods I should absolutely avoid? What's the market cap rate for 2BR/1BA duplexes in the South Side?

Dallas/Fort Worth investors - I know the SFR market is hot right now, but how about small MFR? Any recommendations on neighborhoods that are "B" quality?

Let me know if I should provide any further information. Looking forward to reading replies!