Deal or No Deal? Overpriced w/Little cash flow. Sought after area

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This is a first purchase and I am looking at an off-market 2 home lot. A 4/2 & a 2/1 not attached. Together they rent for 3300 and after doing my calculations all said and done I would ‘cash flow’ around $100/month. The purchase price would be $515k. The same seller owns another 4/2.5 and 3/2 on the adjoining lot that I would have first right of refusal on when he decides to sell it in the next year or two. My biggest hold up is that I know I am overpaying. If I was to pass and it were to go to market he would definitely get more than $515 for it as I live in a college town with little-to-no inventory and everything this last year has sold for way over asking. Although many people with millions of dollars would likely overpay for this property it doesn’t make it a good buy for me correct? Or am I missing something? Given its spring is there going to be a big uptick in inventory and then I’d be kicking myself? 

What does everyone think?

Thank you much!