We presented this seller with a contract-for-deed offer which was accepted after some negotiation. 

Also, you may want to consider using a note servicer (in my area many title companies offer this service). 

House hacking is so smart and you absolutely can offer your room for rent as well.

Some would argue this offers more protection.

Wondering if others have had any mental blocks when making offers on their first property or buying their first property in general.What were they and how did you overcome them?

I appreciate your position and I do offer a simple explanation below.

I wonder if they ever wound up making an offer.

It also offers a tax deduction and is a homestead protected against most financial issues or non payment under a Chapter 13 law and a rental is basically a debt burden that if you cannot pay or something happens you get evicted.

As the local governments struggle to manage tax payer money responsibly, they should really offer incentives to private builders to build "income restricted" at a much lower price. $220-$300/ft for vertical build costs.  

Columbus may offer lower purchase prices, but as you mentioned, oversaturation from investors could affect rental rates and appreciation in the long term.Considering your interest in Philadelphia's vibe and your desire for a potentially better investment environment, it seems like Philadelphia aligns well with your preferences and investment goals.