Nervous First Rental
So my wife and I are buying our first rental. We live in Oregon and the real estate prices are so high that we would need an extremely large downpayment in order to get our payments down to the point of making 2X our payment in rent. Thus we elected to buy a home in Omaha, NE. My aunt is a realtor there and directed us away from certain neighborhoods and was very happy to find us a small house in between the University and the Hospital. My uncle also does home inspections.
Some basics:
Me: 65k per year, 70k in brokerage, 25k in Roth
My wife: 35k per year, 10k in brokerage, 20k in Roth
We own two bare land properties, both worth about 100k each here in Oregon. One is paid off and one we still owe 20k on. We bought one with owner financing and the other we paid cash.
We have no debt other than the land payment, no car payment, student loans, etc...
The house: We have an offer accepted at 156,000 for a 2 Bedroom 1 Bath. Nice little house, renovated bathroom, one car garage, needs small things done like new paint on trim and basement, some carpentry work on back porch/steps, new gas range/oven. Comps in the area renting for about 1400. Monthly payment will be slightly below 750.
I have done quite a bit of research and felt good about the idea, but now I'm so nervous. Due to this we're moving into a house that runs for 1,000 a month in January, down from 1,600 right now. I'm also thinking about selling the property that we still owe on in order to have more of a cushion. We could also use that money next year for another down payment on another property if all goes well.
My fear definitely arose from watching my parents divorce right before the recession, go bankrupt, and one year later my father was driving a school bus and my mom was living in a friend's spare room. I have been quite careful with finances for my entire adult life. Our credit is very good.
Can someone either tell me everything will be okay? is there something I'm missing that I should consider? I have more questions that I'll post elsewhere, but for now I just need to hear from other people that were nervous when they started their real estate journey.
Thanks for any input.