Multi or ADU in Chicago?

[Joseph Niu]

Moved to Chicago 4 years ago and finally looking for my first property—haven't done this before but always wanted to. I would like to find a multi unit but wondering if I'm looking for a unicorn at 400K - 450K. I did find something in Bronzeville that I was VERY excited about for 400 but long story short: my agent seemed inexperienced with the type of deal and the listing agent was nightmare to work with (never responded to anything). Anyhow, I've got a much better agent now and found a single family property for about 420 in Logan-Avondale that is in the ADU pilot zone and RS3 zoned and wondered if that might be a better route to getting started—live there, fix it up and build an ADU (coach house) then rent both. Has anyone done this before in Chicago yet since they've allowed ADUs again? I'd prefer a multi unit but it seems like it may be out of reach with my budget and FHA financing. As I mentioned this is my first property—ever—and I would very much appreciate any guidance/feedback.

Areas I’m looking at are: Edgewater, Uptown, Logan, Avondale, Pilsen, Bronzeville, maybe Hyde Park.