Multi property financing question

[Alecia Loveless]

I made an offer on a 5Unit multi family. When all is said and done it comes in at a 10 Cap and solidly cash flows. The seller has offered it to an acquaintance for a worse deal than mine and has found out the first buyer can’t come up with his down payment for financing but the Seller feels bad walking away from him and going with my offer. There are realtors involved with me but if is still a pocket listing.

In the meantime I have found out a maintenance issue I estimated at $35,000 on a different property is going to actually be $100,000.

I have the funding in place for the first building and can get a HELOC of financing on a property I own free and clear for the $100,000, I just fear I am starting to spread myself too thin by doing this.

What would anyone do in my place? Continue to pursue the 5 unit and leverage equity to pay for the maintenance issue, or gracefully back out of the 5 unit as other deals will come along and use some of my capital and a small amount of leverage for the $100,000 expense?

For the record it’s to build two fire escapes and replace two furnaces. It’s cheaper to build two than one massive one.

Thanks!