To determine price range, the first step is always figuring our how much you are pre-approved for; and that can vary significantly when you are looking at multi-unit properties because of the additional variable of rental income that can be included in qualifying.

It will be cheaper than our mortgage and our incomes will be increasing.

Now that I have a stable income and the drive, I want to finally pursue my curiosity for Real Estate. 

What's left after subtracting the expenses is your Net Income. 

This means that you will probably need to pay registration and filing fees in at least 2 states if you don’t buy CA property as a CA resident.Be sure to tell your accountant that you may now need to file non-resident income tax returns in each state where you own property as well.

Based on its price and rental income do you think it is worth it?

.: Quote from @Trevor Finn: Hey @Kevin M.It sounds like you’ve got a solid plan to build passive income with a focused snowball strategy!

Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.

In your case, changing the property from a rental to your primary residence constitutes a change in use.The depreciation recapture will be calculated based on the fair market value of the building at the time of conversion, not including the land value.Since you're tearing down the existing structure, the entire amount of depreciation taken over the past two years will likely be recaptured, as the building's value at conversion will effectively be zero.The recaptured amount will be taxed as ordinary income, up to a maximum rate of 25% for residential rental property (Section 1250 property).

I would apply the cash flow to pay down the debt and hope to have significant passive income (or equity to put into something else) in 10 years.