FHA or FHA 203k (rehab) loan

[Conrad Legé]

Hello BP community,

I have been in the market for several months now looking for my first small multi-family property and its been a slow process to say the least. Properties are going fast and furiously here in Chicago and every offer I put down has gone under market within days and have gone to "best and highest." 

How does one starting out in this super competitive market close on his first deal? And btw I plan on using an FHA loan. My question is do I continue to look at retail properties on the MLS and play it safe with a more turn key property that won't require any rehab or try to find an off-market deal that is distressed and utilize an 203k loan to force appreciation and create leverage for my future deal(s)?

What do you think?