“If there’s a gas leak in a building, you may just be out of luck,” said Bill Kowalczuk, an associate real estate broker at Warburg Realty. “What buyer would want to

Can I buy my apartment building?

Let’s look at the numbers.

With your $30k in 401k, the max you can borrow is $15k. That’s less than 5% of the $325k. You can’t do anything with that. So keep your 401k.

You only have $1k in saving, so don’t touch that either.

Your only option (that I can see) is to get a 0% down loan. The interest rate for that is around 5%. Your mortage payment would be around $1,750, but with 0% down, you have to pay the property tax and insurance along with it. How much is that? Another $600? So that’s $2,350/month or $28,200/year. Your income should be at least $85k/yr. Yours is less than that. So you may not be able to get the loan, but there is no harm in trying.

Let’s say you get the loan and you get the building. You live in one and rent out the other two units. How much is the rent for each unit? If one unit becomes vacant, can you handle the mortgage with just the income of one unit? Since you don’t have to pay rent, you should save an equal amount of your current rent. So I think the answer is yes. How long does it often take your landlord to find a new tenant?

The question now is how much does it cost to run the building on a monthly basis? Do tenants pay their own utilities? What happens if something break down? Do you have a family member who can back you up when you run short on cash?

Overall, I think it’s a tough situation. You’re going to be so stressed out, but it seems doable.