First Time Buying a Multi-Family – 5% or 20% down?

Hey Reddit,

I’m a 31-year-old living in LA and currently own a condo with a $4500/month loan. There might be a special assessment of $15,000 in the next 5 years. My income is around $7280 monthly. I save around $1000/month.

I have an opportunity to buy a 4-unit multifamily property for $780,000. Three units are occupied, each earning $600/month in rent (total $1800). I have 3 options.

Option 1: Pay $180,000 in cash to close. This would leave me cash poor. I’d collect $1800 from existing tenants and $2000 from the 1 vacant unit, with a $5200/month payment (mortgage, tax etc). I’d have a loss of 1400/mo. My partner suggested putting tenants on Section 8 for higher reimbursement, but I'm not sure I can ask my tenants to apply for vouchers? Pretty sure they’d qualify.

Option 2: Pay $70,000 in cash to close. Payment would be $6250/month. Budgeting $60,000 for repairs and $75,000 for cash-for-keys. I feel like I could relocate and renovate in a year. Top units could rent for $3200, bottom units for $2400. Aiming to earn $10-11k/month total.

Option 3: I walk away? Maybe it’s not the right time? I have a promotion guaranteed in august with a 15-20% pay bump. And I have $100,000 in stocks that I won't touch so plenty of blanket cushion money.

Is this a good deal? What should I do to evaluate this decision? Any advice would be appreciated.