Since it is my first offer/deal I am trying to be on cautious side.  

This reply automatically made me feel more cautious. 

3rd person was cautiously optimistic and interested.

Am I being too cautious?

But one thing I realized, everyone on here is right, screen the tenants like you're screening your future spouse, because in effect, you're marrying each other for at least a year, and in some cases, for longer, for better or for worse ;)You are right to be cautious, as there are a lot of horrible people out there that will take advantage of how our society has drifted towards the absence of personal responsibility.  

@Daria B. if you have not closed a few deals I can see why you are being cautious. 

With so many things being 'new" - just moved there, new job, etc I would be cautious as well.  

@Joe Splitrock - Thank you for the advice on being cautious.

I'd be somewhat cautious about investing with your best friend as well -- I've seen partnerships go very wrong.

Also if comps are at $100 sq ft and the auction is that low I would be cautious just due to the fact if it is that good of a deal an experienced investor would be all over it, but homes slide through the cracks all the time so hopefully this is one for you.