I have been countered lol. 1st possible purchase though, advice?

[Cody Barrett]

Thanks for taking a look..

Pre approved for 100k. 25% down

Property: 2/1 duplex upper lower, built in 1920. Has 1 tenant upstairs for 6 years, very clean tenant paying below market rent at 550/month. Lease is month to month.. Beautiful property really, needs some updating but no repairs. Electrical, plumbing, roof, windows were updated in 2006.

Asking: $98,000.  On the market since 11/2014 w/ an asking price of 124k. Came off the market for a month or 2 and now its back on.  

Seller: 75 years old, trying to make his portfolio smaller and easier to manage. Motivated to sell. He has some experience on me lol (1st time negotiating)

MY 1st Offer: $77,500 BUT he countered after an hour or so to 95,000.  I am going to sit on it for the night and counter tomorrow morning.  

I would love to get this property for 87,500 because even with the low amount of rent the upper is paying, it will pay for the mortgage/insurance and I can update the lower unit in the mean time.  Plus I will have more cash reserves which is a plus.  SO, any recommendations on a nice counter to get that seller closer to that 87-90k mark?  

Thanks so much!

Cody B