Buying that first property

[Jason Edwards]

I am hoping to get some perspective from other more experienced investors here. There is a rental property that is going into foreclosure that is literally next door to our primary residence. There are tenants in the two-family, but apparently our next door neighbor hasn't kept up with the mortgage. I am considering looking into buying the property (of course getting a good deal on it). I think I might be able to get it about 10-20% below market value. I could potentially buy the house for 160k and there are two units that currently rent for $2300 total. 

On the surface it sounds like a good deal, but I have a conundrum. First, my wife has a significant amount of student loan debt. We are able to pay the bill every month, but we only clear about $600 to $1000 a month with our budget. Second, I don't know if I have the money to finance the deal. We have a pretty good chunk of equity in our home (almost 90k) but I don't know if I should tap that with a HELOC to help with a down payment. Third, there is the fear factor. Because I would be a first time landlord I am scared of things breaking, all kinds of repairs, and just losing my shirt.

Anyone have similar experiences? Any advice?