Need advise on an offer of a duplex!

[Cody Godfrey]

My wife and I are working on purchasing our first duplex where we would utilize an fha loan to owner occupy the smaller of two sides. However, we have a dilemma,

The property is listed for 229,900. Each side is a 2 bedroom 1 bathroom unit with partially finished basements (which I know doesn’t could as livable square footage). The one side is extremely large and I feel could easily be turned into a 3 bedroom 2 bathroom unit with a little effort. There is already a shower and a slop sink in the basement so the foundation is started. Currently that side is renting for 915 on mo to mo terms. That’s very low for the market especially due to the fact that it’s a huge unit and is beautiful inside. The other side is equally as nice but a little smaller and renting for 865 but we would owner occupy that unit.

We offered 185,000 last week with no seller assistance and the sellers came back and said they’re only willing to accept a 225,000 offer due to how much they need to get their money back out of it. And here is my question.. am I crazy to offer 225,000 purchase price with 6 percent seller assistance? I’m looking at the long term value when my wife and I are to move out. In the market I feel like the large side can easily rent for 1095 and the smaller side can rent for 995 if not more. Taxes are also high on this property at 5300 per year.

Any advise/assistance would be GREATLY appreciated!