The only thing propping them up and forcing them higher is our monetary system and governmental regulations that limit competition in the market place. 

I've never had to use hard money before, so I am not sure what type of conditions are reasonable.

@John Clark haha in Albany Park there are now million+ new builds and 2 units in average condition sell 5-600s.

Congratulationswhat you’ve found that both the INVESTMENT side of real estate, and theBUSINESS side are very competitive; therefore profit margins are compressed, so those “home runs” people like to bragg about are actually quite rare.  

There is also a provision in the promissory note that states in the event of default, we must deliver the property back in the same or better condition from the time of purchase. 2: We will deed the property back to the seller & execute a contract for deed.

That means that there is now competition between hosts and you have to give people a reason to book your unit over another hosts.

I live in Fishtown, and Adair and Hackett are getting so many applications from students who want to go there who don't live in the catchment, it's become incredibly competitive.

On the plus side the rare times a Section 8 tenant moves the unit is in rent ready condition because it hasn't been ignored as occupied for 6-10 years.

You can find duplexes under $180K in C-class neighborhoods, in decent condition, that meet or exceed the 1% rule

@Sam HendricksenMultifamily is super competitive in this area and you have a huge advantage over your "competition" with the fact that you are owner occupying as most deals nowadays hardly cash flow.