If this is your first time buying I highly suggest you learn how to appropriately analyze a property by understanding the key indicators of a good deal. 

You have to analyze I fit really is a bad location OR if the timing of selling it wasn't right??

Also, you may analyze 10 or 100 properties before buying one at a significant discount.  

We wanted to buy a duplex to live in one unit and rent the other (as often recommended for new investors), but we're not sure whether the area we're intersted in has a strong demand for rentals or not.Does anyone have any recommendations on how to analyze whether an area is good for rentals?

I would figure out what path will generate the largest profit (or smallest loss) given an amount of effort you're comfortable with -- then do that.Of course, this is something that you should have figured out BEFORE you placed your bid...what makes you think the deals are profitable if you haven't gone through the exercise of analyzing them?

@Justin Owens Welcome...feel free to send me your deals and I can help analyze them for you :)  

I'm more of a fix and flip guy myself.You'll come to realize that most buy and hold folks factor in a property management fee when they analyze a deal even if they don't expect to use one right away.

I am also searching Craigslist daily (well through an automation site) and analyzing local deals there.

Thank you very much for taking the time to analyze my situation.

I've tried to go as conservative as possible when analyzing properties.Al, North Oak Park is one of my main places I'm searching in.