Should I Overpay to Expand my Store

[Wyatt Minor]

So for backround I own a retail store in a downtown. My store is on a corner with an alley behind me so the only way I can expand is into the building next to me. However the guy who owns it bought it as an investment property and he wants to make a profit on what he paid. The issue arises because he paid $80k for the building and the SEV is only $24k. So if you double the SEV it’s worth roughly 48k. The building is 125 years old and in bad disrepair which is why it’s valued so low. It also hasn’t been remodeled since the 60s. He offered to sell it to me for $125k on a land contract at 8% which I just can’t justify paying due to it only being worth less than 50k. He said if I pay cash he’d take 115k. I need some advice on what to do in this situation as I need the building in order to expand, but I also don’t want to grossly overpay for it.