Personally, I would have passed because I do not want to have that much capital and credit tied up for as long as it's probably going to take.  5% below what you paid, you have to wait for at least 13% appreciation before you can sell to break even.  5% to get back to zero + 6% to realtors + another 1-2% in other misc fees and charges sellers usually get hit with, and dont forget Uncle Sam's cut.  

Some folks delegate to cheap VAs to do the rough cut talking to sellers then you personally only talk to sellers closer to wanting to commit to a profitable deal.

It is fairly easy to cut with a table saw and jigsaw.  

Is this issue subjective or is there a clear cut answer? 

The number might not be so cut and dry but they do know what it is going to cost in the end.

Now I am stuck on what I should offer next, 129,000 is cutting in to my bottom line a little too much.

Now there is an argument out there which, to some degree, coincides with @Paul Murch's thoughts but it is not so cut and dry.  

Ideally I would try and get approved for an fha loan to cut down at least on the down payment.

In the end, my potential profits are cut in almost half due to such high financing costs.

Generally speaking if you give your tenants a little respect and cut them some slack, It will come back to you ten fold.