We understand and accept that some degree of risk is necessary, but we would definitely be more comfortable with more cash flow; at least right now.

I'm looking for a project manager to help ensure things get done in a timely manner.

If you go to a local bank, they may only allow a certain number based on their comfort level.

It’s to ensure that you have margin, can stomach a hiccup, pay selling costs, and (hopefully) make a profit.

Purchase whatever home you want that fits into you being very comfortable financially to do so! 

Right now sounds like she delayed to ensure renewal.

I am struggling because this probably is not the best "investment" home, but it is one the family will be comfortable in.

I had a mentor to help me at times before I felt comfortable- If you lack this I would suggest contacting a realtor and giving them your business if they can get a higher rent.

Of course it's all about comfort level and what kind of rentals you buy but you can certainly play it safe and do waaaay less than 100% cash.

Don't skip the learning phase though, you have a great opportunity and if you can ensure you are knowledgeable and understand what you are jumping in to before you actually do it, then you will greatly increase your chance of success.