No income but plenty of assets and can't qualify for a 198K loan

[Jesse Flores]

Hi BiggerPockets,

I am looking to buy a duplex for $198K plus minimal closing costs.  Income is $750 per unit or $1,500 per month.  I wanted to get a loan with 25 % down payment.  I have already put in a bid for the duplex but the loan agent cannot get me a loan with decent terms.  I have a little over $800K in my retirements savings and $225K in cash.  The agent is now asking me if I want to pay cash for the duplex.  I'm living on the $225K cash and currently do not have a mortgage as I'm looking for home also so I'm staying in a property that belongs to my father (rent free of course as the home is paid in full and he was not renting it out).

So BPer's...  What do you think I should do?  I do not want to touch my retirement account but I could get say 2 - 3 % and at least have some income.  Please advise as I'm not sure if I should go ahead and pay cash for the duplex (then I wouldn't have any more $ for any more deals).

Please give me any advise as to what I should do as this is my first rental property.  I thank you all in advance on any advice given.

Best regards,

Jesse