Am I in over my head buying this home?

[David Wiser]

I have 1 duplex that we rent both units out and have about $300 in cash-flow until we pay of a loan we got for the down payment from my father in law. We should have that paid off in 3 1/2 years. After that we will cash-flow about $800 a month... ($65,000 in equity)

The second duplex we live in half of it and so we break even. If we move out we will cashflow $900. ($100,00 in equity)

We are looking at buying a house but because of the rentals we can't qualify conventionally for this 3rd home but we are doing a seller finance with little down so we have a higher interest rate and not as good of deal on the property. ($1,700 dollar payment) 

DO I DO IT? If the market drops here in SLC it'll hurt bad on this deal because we don't have wiggle room...