Very new

[Amy Bean]

Looking for advice:

Currently own 1 home 65,000 owed value approximately 110,00- 125,000. (4 bedroom 1 bath slab home) Husband and I have about $30,000 debt otherwise (cars, cards, student loans). We have the opportunity to purchase a home on 20 acres for $40,000 3bed 1 bath full basement) (move in ready, it's his mothers house) value  approximately $106,000. We are throwing around ideas on how to handle financing. We cannot afford to keep all debt and 2 houses. We can't wait to sell first home to purchase 2nd. We are considering a home equity loan on first home to pay off debt ( bank says it will increase the payment by $25) and then taking an additional mortgage for the 2nd home of $40,000. This would be affordable to us. Right now $670 for mortgage and $800 in minimum payments for everything. If we can swing everything we would have $350 ( house and tax insurance) for second home  $695 for 1st and no minimum because it would be consolidated. Does this sound reasonable? What do I do with second home? We also can take the equity from 1st home to get 2nd but we would still have $695+800 in minimum payments.  We are considering renting the 1st home but also selling as its a big house and we have never rented a home nor have we been landlords. Any advice?