22 Year Old Chicago Investor Looking for Advice

[Grant Viola]

Hey Bigger Pockets Members. My name is Grant, and I am 22 living in the city of Chicago. I am originally from the suburbs, and have been around Chicago for my entire life. My dream investment would be to purchase at least 2 units, live in one, and rent out the other. I am very anxious to begin my real estate investment, and have been on the search for a deal that makes sense for the last year. This would be much easier if I had any sort of desire to live in the suburbs, as city prices are extremely high.

Any advice on people that know the market well? Any hypothesis on the next area to blow up? Has anybody made a similar investment?

Any advice here would be greatly appreciated! 

[Jake Fugman]

@Grant Viola It really depends on budget of course.  I would say if you are looking to house hack (owner occupy) a duplex or triplex @ $150,000/unit or less I recommend a near suburb like Berwyn/Forest Park where taxes are still somewhat "reasonable".   OR if you go with the city - I like NW neighborhoods along the Milwaukee corridor (Avondale, Irving Park, Hermosa, W Humboldt, W Logan, etc).   The south side also has potential as @Jonathan Klemm mentioned. 

Also, some advise is that you will find its hard to produce the necessary debt/income ratio to make a duplex ever work unless its fairly cheap - this happens because you are taking up 50% of the building gross income potential by living there.  Look for legal but non conforming 3 units where you can live in the basement or attic.  Then find yourself a lender that is clear on how to make sure zoning wont be an issue.