first deal in the works.. YIKES!!

[Robert Andrade]

We put an offer on a multi. We're going FHA so the first floor was big enough for the family and in pretty good shape. The second floor was divided into 2 rabbit run units that were in need of some updates if we were to receive optimum rent so we chose to offer lower than asking to compensate for the 203K loan that would be needed to fix'er up. Our offer was declined in lieu of an offer that came in just before ours. Was the offer better or was it just a matter of taking the first offer that came in?.... don't know.

So on with the search after learning a little from that process. long/short we found a second property that we liked and put an offer in - a 3 unit multi, walking distance to the beach. This home is in great shape, seems to need very little, is fully occupied and receiving really good rent from tenants that have been there 10 years in units 2 and 3. We attended the first open house and the property was filled with interested buyers. Trying, I guess, to compensate for our possible previous faux pas our offer was $2000 above asking price with a few contingencies. ( first floor had to be empty before closing (these were newer tenants anyway), we wanted verification of rent roll for the past year and obviously inspection..yadda yadda.)  Our offer has been accepted and i'm feeling a lot of emotions, most stronger than the joy I should be feeling. Is this normal on your first purchase? I can't help but wonder how much lower our offer could have been and still be accepted.

Now the property should cash flow adequately while we occupy it and very nicely after we depart for our next FHA property. Just better than $100 per door using the BP rental calculator. So I am happy but extremely nervous and afraid. I am determined not to be one of those people who let's fear stop them from ever getting started though so... here i go.

The house isn't ours yet. Next comes the P&S and getting the bank commitment.. all nerve rattling stuff. does it get better on the second one? hope so. Fingers crossed all goes well with this one. I've seen many properties go pending and then within a month, right back on the market.

What obvious mistakes did I make? Any comments from you guys and gals are very welcomed.

P.S. the first property we offered on just came active again.. **biting nails**

[Aaron Mikottis]

I backed out of my first two contracts so I can assure you from personal experience that the fears that are haunting you are all just a normal part of the process. It's often hard to say what the optimal decision is regarding any particular deal - all you can do is make the best decision you can with the information you have at the time.

Ultimately, it's important to keep in mind that giving up is the only true failure so even if a million and one things go wrong on your first deal, it truly won't wreck you. Keep a log of your anxieties and hiccups. By the time #2 rolls around, you will be able to take those learning experiences and prevent them from being a problem again.