Evaluating 4-Plex Opportunity

[Greg Heden]

Let me preface this question with the following criteria:

-Looking to put work some capital from a cash-out refinance

-Currently earning 5% risk free in a MM account

- In need of depreciation to offset passive income from other investments

-Already in high tax bracket due to business income

-I am a buy and hold investor and own a design/build company locally for over 25 years 

My question is does it make sense to purchase a RE investment that has upside potential, in a great area, but currently will produce a negative ConC return with 30% down?  I can see the potential in this property but having trouble with justifying going from a 5% risk free return to a negative return.

Thanks for any and all input-