Getting cold feet on first investment property

[Erica Anne Langston]

My partner and I recently got under contract on our first potential investment property. It's a 4/2 duplex in an amazing location  that grosses about $1600 in rent and we're looking at paying $160.5 for it with possibly as much as 25% down. The property appears to be well maintained, if somewhat cosmetically outdated, and I initially felt like we were getting it at a steal compared to what single-family homes go for in the neighborhood. Well, three days in and I'm not sure. One of the two units is a converted garage with super low ceilings (6'5). The tenant in the other unit has lived there for 7 years and said the low-ceiling unit has almost always been occupied, but we're buying the property $4k less than what the owner paid for it in 2007, and I can't help but feel like the low ceilings have crippled the property value (hence why it feels like a steal). This is in a tourist town, so we've considered using the lower unit as an AirBnB instead, as sometimes travelers are little more amenable to these sorts of flaws, but I really don't know. We haven't had it appraised or inspected yet (only been under contract for 3 days), but I already feel overwhelmed with uncertainty. Is this just first-timers nerves, or does this sound like something we should run away from? 

[Lien Vuong]

@Erica L. Each RE experience is valuable, while you did back out of this one you did get far in the process and now you know what your expectations are for the deal. Two years from now you will have built your portfolio and think about about this moment and realize all the knowledge you gave gained along the way. 

Good luck and keep us posted along your REI journey!