Submit Offer or Wasting Time?

[Justin Godlewski]

My first post Bigger Pockets!

I looked at a side by side duplex in a great location this past weekend that can prove to be an excellent cash flowing investment with BRRRR potential! Unfortunately, in person my agent and I were able to see it needed a lot (and I emphasize a lot) more work than was shown in pictures or explained in the description online. Here's my problem:

According to my calculations and accounting for repair costs, I would need to purchase the property for no more than $60,000. Problem is my agent was able to see that the owners still owe $80,000 on their mortgage. Is it worth the time to have my agent draw up an offer to submit for $60,000? Is there ever a chance they would accept a price lower than what they owe? It's in rough enough shape that there are too many repairs for an $80,000 sale. At the same time they just dropped the sale price by $20,000 to $99,500 today. I appreciate your opinions in advance!