opportunity to buy duplex in HCOL area – liquidating cash on hand worth low rate?

Hi r/personalfinance. For anybody who reads this just wanted to take the opportunity to say thanks. Also posted this in real estate so if yall would like me to just focus on replies there that is cool too. I like multiple perspectives.

**TLDR; liquidating cash on hand/brokerage account to get into house. Goal is to free up personal liquidity over the long term in a HCOL area, hedge market exposure through diversification and build an equity stake for my retirement/kids college fund/sick ass ferrari.**

I recently just got an offer letter for an amazing job making 110k base w/ 10% bonus. This is in a HCOL area, think right outside of NYC. There is a family home that has been passed down for a generation that I have the opportunity to buy from my father. This property is a duplex, however, I plan on renting out both apartments and living in the basement. The area is zoned for two people but there is no kitchen downstairs so I just plan on eating at my parents place/eating out a lot (10m away from them.)

On to the financials. The property has a cap rate of about 10% and overall breaks even from a net cash flow perspective. This area I am buying in is very hyperinflated, just like about anywhere in this market. The best feature of this deal is how I will be able to buy the property from my father who is willing to accept non cash payment and a slight reduction of mv price given the property has increased in value by 30% in 2 years. I justify the break even cash flow by the fact that I can live rent free in an area where a 1 bedroom apartment typically costs 2500. This would allow me, barring no problems with the property, to put away 4000 dollars a month into the market ALONG with building an equity stake and hedging my double exposure (401k and personal brokerage account). Also could get about a 3% rate with my solid credit profile

Alright. Here’s the question:

I have about 35K cash on hand and 20k in a 401k that can be liquidated. Through first time homebuyer programs I can get into the house with a 5% dp. I have a 770 credit score and when factoring in 1 apartment rent my DTI ratio is well under 36% and 28% of overall mortgage, taxes, and other debt service.

My main concern: **I would need to liquidate my cash on hand in order to get into the home.** I plan on financing the closing costs. My real concern that if something bad were to happen I would be essentially cashless besides my 401k for about a year. After the year I will be able to save up 50k given I have such liquidity with my new job and no rent.

What do yall think? Again. Thanks for taking the time to read.