Deal didn't appraise, twice. Would you cancel this contract?

[Nikki Kofkin]

Hey everyone, I could really use some advice on a deal I have under contract. It's a massive rehabbed 4-unit building in Marquette Park in Chicago. Currently under contract for $451,000 but has appraised at $400k and $380k. It would be the highest sale in the area, but with good reason. It's significantly larger than any other 4 unit building that has sold. Projected net monthly rent of $2000+. Two of the units are already rented at $1872 and $1350. The largest unit is still available and another unit comparable to the one that rented for $1350. The reason I wanted this property in the first place was because of an income-based approach. The projected net cash flow is so strong. It would be a turnkey kind of situation, sellers are huge in the market and flip/hold so many properties in this area. They would be my property managers as well and I have the utmost confidence in them. I'm just so concerned about the fact that it hasn't appraised now, twice! Both appraisals didn't seem like they were giving a very accurate picture. However, if the market takes a dip, areas like this get hit hardest. I have no idea what the property will be worth in a downturn or after a downturn. The seller is willing to come down 8k and sell it to me for $442k. But are the two bad appraisals enough of a reason to walk away? Would love to hear your thoughts. I'm so torn because of the cash flow potential.