Searching for my first deal in Chicago

[Kevin Chen]

Hello BP Chicago,

My name is Kevin and I live in the north side of Chicago.  I have been educating myself about long term real estate investing through listening to BP podcasts, reading books (Kiyosaki, Keller), and attending the local meets.  I am interested in 2-4 unit MF to buy/hold, and have been searching for my first deal since Feb. With that said, I wanted to get a temperature check on my approach and whether I should change it.

I have been working with an agent who set up an MLS search for 2-4 unit MF in McKinley Park, Bridgeport and Logan Sq area. Inventory is very low and properties vaporize! People are also buying at above list with multiple offers. There was a 3-flat (all 3/1) in Bridgeport that sold for 481K cash. One unit is owner occupied and the other two rent for 800 and 635. Are people making money at these prices? I'm guessing that everyone is speculating to sell on the back end of higher or living in one of the units. Recently, I expanded my search to Jefferson Pk, Albany Pk, Lincoln Sq , Ravenswood area, but those are even worse. Brick two flats are 350-400 and only rent out for ~2500 for both units.

• Do I need to go outside of Chicago (Tinley, Chicago Ridge, Indiana)?
• Are there no deals on MLS?
• Should I look for single families?
• Should I hunt for deals at the tax sales?
• Wait for the market to cool off?
• Is the criteria of 1% rent unrealistic in Chicago?

Looking forward to get some feedback and to learn from everyone. Thanks.

Kevin