Zillow says its worth $240,000, which I think is low, and would rent for over $2,000.

Chicago, with its vibrant neighborhoods and strong rental market, is a prime location for this strategy.

It's all about the neighborhoods you are investing in.

What are the comps selling for (last 3-6 months)in the neighborhood?

Low or no down, seller financing and low or no interest with a balloon payment later is the holy grail (location, building condition, market also matter but it sounds like you have all that).

I own 4 two/three flats bought between 2013 and 2020 in Forest Park, Illinois, at low interest rates and prices in 200000's  They cash flow nicely and prices have increased a lot. 

Is it possible to buy a property in Seattle low enough to get 1%, yes.

The key is understanding the nuances of the program and making sure your property aligns with their inspection standards.In Detroit specifically, Section 8 tends to work best in C and C+ neighborhoods.

I’ve had to widen my search radius to smaller suburbs or target properties needing light cosmetic work to make the numbers work.Value-add opportunities: Adding amenities tenants love, like finished basements or upgraded kitchens, seems to justify rent premiums in this market.Navigating the competition:Be creative with financing: Seller financing or partnering with other investors has been helpful to secure deals when conventional offers didn’t cut it.Work with local agents and wholesalers: They often have their finger on the pulse of off-market opportunities, which is critical in a hot market.For those new to suburban Chicago investing, I’d say the key is finding the “sweet spot” neighborhoods—ones on the rise but not yet maxed out in price.

You'll likely need to be in a C/C+ neighborhood to find the 1% rule, but you can still break even or sometimes get some slight cash flow in the B neighborhoods of Columbus.