my first offer jitters

[Gary M.]

I am going to make my first REI offer for a duplex on Monday and I'm worried that I'll blow it. Here's the deal... Grandma died and left her half to 2 grandchildren the other half was left to grandma's brother in CA. I asked them what they wanted for it and they answered that it was appraised in 2/07 for $100,000. It will rent for $450/unit it will need about $18,00 in repairs. (The duplex next door sold last month for $78,00 it needs new HVAC and gen. repairs)

From their appraisal figure I get the feeling that they have high hopes for the sale price. I was hoping to keep it as a rental but I don't think that they would go for an offer of $27,000 (is that right for the 2% rule?). So, I'd like to resell it. That would change my offer to $63,000 no more than $67,000. I feel that if I can't sell it right away it would be able to take care of itself. But, even at $67,000, I can't imagine that they wouldn't think twice about my offer.

The frustrating thing for me is that aside from the online REI class I took and the people here at biggerpockets all of the local investors I know would happily pay $80,000-$85,000 for this unit.

What is your opinion about this deal?

What is the best approach for making an offer?

Thanks,
Gary