Realism

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I am closing on a property at the end of the month and wanted some feedback on my plans. I have read through a good bit of the forums and have seen that the replies to posts on this site are constructive yet realistic and I would love your take on mine.
I live with my wife in her parent’s rental home. We pay their mortgage or even a bit less. It’s a great deal and are grateful for their generosity. Our plan as it stands is to use our first property as an rental, bring in a profit and use that to pay off some debt, buy our first primary residence and begin funding the dream of more investments and eventually replacing both of our incomes.
Background:
I am a librarian at a public library, my job is research. Whenever I do something I do try to spend a good amount of time researching it before I make a move. I am well aware and reading the plethora of books on investment property/mortgages/flipping/property management. I am looking into joining a local REI club, however they either meet in locations too distant for me or at times I can't make currently, that or they are for women only. I will keep looking.
I also had at one period a second job as a property manager of a commercial building. My entire family is construction/handyman types and I had worked carpentry while getting my first degree. So sweat equity and repairs are something I look forward to and am not frightened of.
Plan:
The market in my area was really tough, I went through 9 bids over two months some as high as 20k over asking, and even waiving inspections (one of my family members is a retired inspector and came with us during viewings). But we had no luck against the cash offers and those with bigger pockets. We shifted our strategy to slightly higher priced properties and snagged one soon thereafter.
The property is in North Denver, and I know how to market this property. It is a larger home with 1800 finished square feet, and huge garage. We are financing 95% conventionally.
I hope to find renters willing to pay 1% PV or higher in rent and begin paying down debt, building up funds for the next property. Is this situation common? Wise? Pitfalls? Any advice would be great.

[Nathan Emmert]

At 1%, you're not going to generate much in cash flow... If the short term you might be able to forgo some of the longer term escrow accounts to pay down debt, but it won't be a large impact.

Where are you getting a 95% NOO Loan from? Generally speaking you'll need 20% down for conventional financing though there are programs like the VA that do offer alternatives.

ND is much more a speculative market then a cash flow market. A lot of money has already been made there. You need to decide if there's still more to be made or if you're about to be the guy holding the bag when the music ends.

How do you plan to do sweat equity from several states away?

If you're looking to use this investment as a way to pay down debt... if you're looking to use proceeds from this investment to fund future investments... then you need to be investing for cash flow. Those are properties that generally generate 1.5 - 2% of purchase price in rents and often times are multifamily homes versus single family. They will be in rougher areas so can require more hands on management as well as additional repairs in older buildings but that would fit your desire to add value.

Just a few things to think about...