1st Offer Ever: What I've Learned

[Julie Engelien]

Yesterday we made our FIRST OFFER EVER on what could have been our first home-- a duplex in an up and coming neighborhood of our favorite city, full of major house hacking opportunity. From crunching our numbers with 5 different mentors/friends, it was clear - this was going to be a cash flowing machine. 

We were anxiously thrilled and spent hours deliberating their counter offer. We stubbornly ended up deciding to stick with our original offer. The what-ifs have overwhelmed our minds as we realized the potential loss. Not even considering inflation, we would have had the potential to cashflow this built-in-1890 gem well into the $600s (~$300 per unit). But we were nervous. The cost of a potential boiler/asbestos removal, foundation concerns, no laundry, no garage, and the shady liquor store across the street were enough reason for us to say 'we feel comfortable walking away'. 

Right now, the regrets we have from not accepting their counter offer feel heavy. Similar to how it feels being a Minnesota sports fan. Who knew real estate investing could be so grossly emotional? So - to prevent ourselves from being overwhelmed with FOMO, here are a few things we've learned from submitting our first offer:

1) There are always other and even BETTER deals

2) $4k isn't really that much different in the grand scheme of a 30 year mortgage

3) Making offers truly isn't hard

4) Zestimates can be deceiving

5) Use blizzards in April to your advantage (only the fiercest go out for a showing in blizzard conditions)

6) BP needs to have a podcast episode on negotiation tactics

7) Old homes may have charm, but also a lot of baggage

8) Sometimes you don't always need to look at the second unit 

9) Emotions are fine, we're human, duh, but you should always keep them in check with the #s, if they work, trust them

10) I welcome hearing your wisdom and insight you've gained after making your first offer. Lord knows we need the encouragement :)