That could leave you the emergency fund and money for a good used car.

@Richard NguyenHere are some of the downsides of putting real estate into a self directed IRA or 401k.No tax deductions: You can’t claim deductions for property taxes, mortgage interest, depreciation, repairs, improvements and other property-related expenses.Property expenses: All expenses, repairs, and maintenance costs must be paid with IRA or 401k funds, and you must pay others to do repairs and manage the property.

There's been a massive revitalization effort that started downtown and has spread throughout the city via the Strategic Neighborhood Fund (SNF). 

We have found what works and repeat it as much as funds allow.

I can use other peoples money, lines of credit or other ways to fund the downpayment.

But 3) Try multifamily specific brokers, crexi and loopnet, although 2-4 units maybe scarce. 4) A home equity line of credit is a good source of funds however it will generally make your overall monthly payments higher, so unless a deal is very solidly cashflowing, a HELOC may put you into negative cashflow. 7) Typically electric/gas are paid by the tenant - however this isn't true across the board. 

You should either buy with a DSCR up front if the property is eligible and self fund your rehab or hard money for acquisition, do most rehab to common areas with the exception of additional walls prior to refinancing into a long term DSCR loan. 

You'll also want to consider if each lender provides funding for renovations/improvements.

The buildings are getting older and they don't have the funds to do the repairs.

He could get hit with a significant expense and not have the funds to pay for it because he hasn't collected enough rent income.