If your local market is tight for inventory, you will struggle to find a way to use this 203k loan on a really great deal. 

We are very upfront with our process, and in fact require anyone that wants to receive our inventory to sign a non disclosure acknowledging the details of how we work, that we are licensed but do not represent them in an agency capacity, that they are encouraged to do their own due diligence, etc.

Obviously is a sellers market and inventory is low at the moment but with some work, deals can still be found.

Good rental inventory will always go fast and 3/2 are great, very desirable rentals.

Also, Is potentially building a four-plex a better option given the low inventory?

The supply is reduced so the inventory is low. 

I'm thinking of waiting a year for the crash, but I'm worried about the inventory drying up and IR rates so high that I would now only be able to afford at most a 2 bed condo as opposed to 3+ bed home. 

I keep on seeing data that the inventory in the Twin Cities market is at historic lows. 

I have been seeing a lot more Inventory lately, but since I am not an expert in that market I can't tell what direction prices are moving.

With the current lack of inventory there's no reason a house should not be selling, other than the price is too high.