To over pay or not for a property

[Erika Martinez]

I looked at a property that is very unique but they are asking 50k over the price. The property is actually two properties together. It is a tiny home in the back with a huge lot and a commercial store of 200sqft on the front on a very busy street. I think it has potential if I add a mother in lawsuit in the back. The property is distress, very outdated and the house itself is very tiny. I looked in the city records and they assess the property for 500k but the owner is asking 550k. I did the mistake to overpay for my current property and I don't want to make the same bad business decision. I lived in a very "trendy area" in downtown Denver and I don't know if I am letting go of a good opportunity. I ran the numbers to buy it as a rental investment and I would lose money but I am not sure if turning it in my primary home and adding the mother in-lawsuit it might make it worth it. Can someone give me any advice, should I make the offer for 550k? or should I wait? Thanks!