Can a 3.8% Cap rate (before financing) work?

[Vincent R.]

How do I make this work? 

4-unit apartment complex

$1.8 million purchase price

$9,000 combined monthly rent (very close to market rate, minimal value-add through rent increases)

$40,000 operating expenses (taxes, insurance, capex/vacancy savings).

Tenants already pay utilities.

3.8% cap rate BEFORE financing. All numbers are market-rate, property is nicely updated. 

Is this a "cash-or-bust" deal, only? I dont have $2 million, but I can do 5-20% down. Problem is... a mortgage makes the deal $3,000+ negative... monthly!

Please share your most creative ideas. I'm looking for a multifamily to potentially house a family member's family in one unit. Prices are not affordable to the lower (economic) working class in this area (Bay Area, California) and me owning a property would help the family member maintain an affordable living quarters.

Thanks in advance!