Over pay in a competitive market, or invest out of state ?

[Raymond Lewis]

My market is extremely competitive, houses are selling for well over the listing price, and at a very quick pace.   With that being said, do you guys think it's a good idea to purchase a Turn-Key multi-family property for well over the asking price, with the intentions to house-hack and also use the property as a rental income stream for the next several years ?     

I've used the Rental Income calculator on here, and it seems to be a decent cash flowing investment, however it appears I won't have any equity for a few years if I purchase it above asking price.        There is no getting around paying over-asking price in my particular market.   Bidding wars are being conducted on Any & Every house that is for sale right now.   It's ridiculous.           

 So my question is, would you guys pay the extra money to purchase the property knowing that you'll get good cash flow on it, or would you just try to invest in an entirely different market, a market less competitive ?