To buy or not to buy

[Lance Carver]

Trying to decide if buying a 8 unit apartment is worth it... I'll try to give all the necessary information but one thing to keep in mind, this is my first multi family property. 

Property is 8, 1br 1ba. It is two quads. The asking price is 180,000 but I believe I can negotiate the price down to 160,000 0r 165,000. I ask for the rent rolls and got back the last 4 months but all of the units are full. One is behind on rent slightly. The rent for the 8 units is 460.00 per mo and they are on a 1 year lease 3 of which will end within 3 months. 

The buildings could us some new paint and few need new carpet but the overall health of the building are good. I mean good to me I haven't yet had a inspector come out and take a look yet.

The pinch for me is this. I don't have the 41,250 ( using 165,000 as the price) cash to put down but I can make up the difference with borrowing from the 401k. But then I will need to be able to make the payment on the property AND make the payment on the 401k loan.

My question to you more experienced people is what would you do?

Thanks in advance

Lance Carver

[Rich Baer]

@Lance Carver 

It sounds like an excellent opportunity. Go to family or friends for assistance. Go to hard money lender for financing. Make sure the building has no lead paint issues. Talk to a local lender about a quick refinance.