Searching for a neighborhood in Chicago to purchase a multi-unit property

[Donald Hruska]

Hi all,

After a good amount of reading I've begun saving for a downpayment for my first rental property. My plan is to purchase a multi-unit property and live in one unit, potentially utilizing a FHA loan. I'm in the process of looking at properties and checking Redfin daily as I try to get a feel for the market and decide on what neighborhood would be best to look in.

I think I would potentially like to buy a slightly (cosmetically) run-down property that I can work on fixing up as I live in it, both to minimize initial costs and to potentially increase home value. I'm a young professional and currently live very close to the Loop with roommates, so if they moved with me it would probably need to be relatively close to the Loop. Ideally, Old Town, Lincoln Park and Lakeview would all be great neighborhoods, but I feel that costs of homes there are too high for my current position, especially if I want to utilize a FHA loan. Wicker Park or West Town could optionally be good, if I could find something affordable and near the blue line.

So, my questions for anyone familiar with neighborhoods here in Chicago:

1. Are these assumptions about neighborhoods and prices correct or am I off base, and do you have any other neighborhood suggestions given my criteria?

2. Are there other ways I can be searching for properties and getting a feel for the market as I build up my funds? I've heard Redfin is a useful online resources because of the MLS access, but is there another way I could be looking at properties not "officially" on the market? Would networking with wholesalers here on BP be beneficial to me or do properties sold by wholesalers tend to be priced high?

Thank you all!