Need second opinion on deal ananlysis

[Xingcai Wu]

Hi BP,

My name is Wu. New to BP and signed up for Pro membership couple months ago when I decide to buy my first property to house hack.

I have gotten a four unit property built in 1902 under contract. It is two-duplexes on the same lot with a four-car garage. My plan is to house hack in one of the duplexes and rent out the rest. The asking price is $349,000 with property tax around $5400/yr. Property insurance about $250/month. I’m going with 20% down conventional with rate locked at 6.625%. 

 Currently one duplex is rented to section 8 tenants. The rents on the first duplex is $1200 and $1300, could be higher when leases end. The second duplex is currently vacant, the rents could be $1200/unit when fixed up. Based on what I saw on my walk through, the vacant duplex needs a lot of work, such as new roof, windows and siding. I negotiated price down to $319,000. 

So, after the inspection last weekend, we  found there are more water damages to both duplexes because of missing gutters and holes on roof; also, foundation problems and old knob and tube wiring. And garage roof needs replaced as well.

I will definitely go back on the negotiation table and try to get seller credit. My question is should I walk away
from this deal because it has too much problems and too much money to fix it up? 

Any opinion helps! Thank you so much!

Wu