Do I Make the Offer? Advice for a Newbie

[Kaitlin O'Brien]

Hi BP Community!

I'm new to real estate investing and hoping to start my journey by investing in and house hacking a duplex in Union county, NJ. I'm running the numbers with the help of my lender and leveraging all the great resources on BP for evaluating if a rental property is a good deal. I found a property where the numbers and returns work and I saw it with my agent yesterday. There was nothing glaringly wrong that makes me think this wouldn't be a good investment - I'm just hesitant since it was one of only two properties I've seen. That, and I'm such a newbie that I still feel like I don't know what I don't know.

There's not a ton of inventory out there that meets all of my criteria (FHA loan, ~$500-$550k, duplex, no or little upfront maintenance) so I don't want to lose a good opportunity. I'm hoping for some advice from you seasoned investors - what kinds of questions should I be asking myself before diving in an making an offer? Should I wait and see if any more inventory becomes available at the risk of losing this deal?

Any and all advice greatly appreciated and welcomed! Thanks in advance :)

[Michael Dumler]

@Kaitlin O'Brien if your numbers check out and you have verified with other investors then you should absolutely make an offer while keeping your inspection contingency in place. In the event that some red flags pop up during the inspection then you can either negotiate with the seller to cover the costs or terminate the deal and move onto the next one. With the information you've provided it sounds to me you're just facing some analysis paralysis which of course can be expected on the first deal. Hope this helps!