Purchasing a property for $390k with appraisal $400K in East Bay

[George Lai]

Hi, I had been searching for house hacking deals for months, and found this one. 

Although I need to pay extra about $1,200, the most motivation for me is Comp about $510k;
because I know I get a good wedge deal.

Now the appraisal came in with $400k only(cost approach and comparison in the neighbor).  Suddenly this deal is less attractive to me.

My take home pay is slightly more than $3,000 and I borrow HELOC from my mother as down payment and rehab cost; Keeping the deal will drain my bank account without emergency money, and the potential equity gain is slim.

I would like some feedback from any of you. Thank you