Would like to buy rental property in AZ or NV

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My niece and I are thinking of buying out of state rental property in Las Vegas, Laughlin or Tucson.

I have $40,000 sitting in the bank earning 2% interest. I contribute 29% of my salary to a 401K plan which is not doing too good at the moment.

We both live in San Francisco and own our own houses. We can't afford to buy investment property in our area.

Got this loan for $250,000: Only thing left for approval is signature
About $5,000 for closing costs

6.5% for $200,000 for 5 yrs. - int. only

9% for $50,000 for 5 yrs. - int. only
This is for stated income only as my niece is self employed.

The second loan of $50,000 is for the 20% down payment.

Should we put 20% of our own money for the down payment?

1083.00 lst mortage
375.00 2nd mortage
12.00 garbage
15.00 sewer
60.00 house insurance
100.00 property tax
1645.00 TOTAL

We could probably rent this in NV for about $1200 a month. So we are losing money to begin with.

I could decrease my 401K to 6% instead of the 29%.

We both owed no debts whatsoever. Both our credit scores are in the 780+ range.

I know this doesn't sound too good an investment, with the negative cash flow. We haven't found a property yet. We are looking more to Laughlin as there are more people looking for rentals compared to Las Vegas. We could also buy a condo in Laughlin for less than $250,000 and might realize a positive cash flow.

Property management in Las Vegas and Laughlin is 10% of the rental.

I have a husband who lives 70% in SF and 30% in Laughlin. Husband could do the maintenance and management in Laughlin for the first year to save money.

What are your thoughts? We have to start somewhere.