Counter offer received. Thoughts?

[Erik Schilling]

Hey guys,

So I made an offer on a 4 family this morning.  Asking price was 119K (124K last week) and I offered 95K.  Some numbers on the property:

About 500 per unit (fully occupied) and could be raised to maybe 550 or so.

Taxes 3000 per year

C Class area

Tenant pays electric and water

About 200 a month in other utility expenses per month for me

The property does a need a little rehab, but its fully functional as is.  

SO

They countered at 117K and will replace all windows (between 25-30).  However I am at the upper limit with my bank and can only purchase a property for 110K with 30% down.  Anything higher would be additional down payment.  I was planning on using a 401k Loan for down payment as Im closing on a different property in a few weeks.

I have until 5:00p today and they claim to have received another offer by email, but its not an official one.

Any help would be great.