How to consider all things when deciding to buy a property

[Terri H.]

Hello! My husband and I have an accepted offer on a foreclosure home that needs a lot of work. The location is really good. The house is small and cute, 1949. According to my estimates, it makes the 70% rule. But what about other factors? Here's what we have:

Rental 1: occupied for $900/mo. No mortgage - tax and ins. about $200/mo.

Rental 2: Vacant and needs $15K of work. Rent will be $1400/mo. Mortgage is $650/mo.

Rental 3: occupied for $900/mo. Mortgage is $500/mo. 

Personal home: Mortgage $1400/mo.

Income from our jobs is about $6000/mo take home. 

I lost my part time job and may qualify for PUA - should know in about a week. 

The house we want to buy is $33000. I'm approved for heloc on personal home to buy it outright. It needs $40K of work. Rent will be $900/mo if we divide a large added on room to allow for a third bedroom. The $40K would come from my husband's personal funds + loans off his insurance policy. 

Once finished, we could finance this house with a conventional loan to pay back the heloc and insurance loans. 

Cash flow when all said and done would be about $350/mo. 

What am I missing? I feel nervous about going forward but at the same time I want to take a chance because of the sweet location.