Wisconsin- low appraisal a deal breaker?

[Matt E.]

Last night the appraisal came in ahead of my first deal. The property was valued at $153,000. My offer was $178,000. The 2010 appraised value was $172,000; rent has increased and they've made improvements to the property since then.

The seller is a friend of my mothers. She's been my mentor and was going to be my property management as well.

Is there anyway that I can still make this deal work? I live overseas so maintaining this relationship is especially important to me. Nevertheless, I don't want to start my investing career with a poor buying decision.

I would really appreciate if anyone could steer me in the right direction.

Thank you.