Thank you so much for the great replies! You all gave me a lot to think about (and I want to think about this and not the baby not coming!
To answer some questions...
Yes, we would have about $200/month left over. I guess that is a good amount. I am just so used to being poor I am being very cautious!
But no, we don't have any savings besides my DH's 401K. I know we should, but the move here was extremely financially hard on us. We are expecting a big tax return this year though, and that will go into savings.
The reason we are getting such a great deal is because the house has a lot of emotional attachment to the owners (our friends) and they want to see it go to someone who would love it like they do. They also are very well-off and very giving people, well-known and liked in the community, and share our faith. So that is why we can do this. We are also getting it well below it's appraisal.
The house is really new, so it shouldn't have anything go wrong. Of course, anything is possible, but it's not likely. Plus, there are things about is that would help us save money, like a wood-burning stove for in the winter, etc.
We couldn't really rent any of it. It's mostly thick trees... but I bet we get asked a lot if it people can hunt it. (Scary-- to me anyway!)
And, yes, this would be our *forever* house.
That is one thing that makes it so great- it would be really hard to outgrow this one- and I am tired of moving every so often, getting a house fixed up, and then eventually starting all over in a different house.
So, I think we are doing it! I am SOOO excited. We are mentally putting our furniture places, thinking of DS sleeping outside in his tent on the deck off his bedroom, and of him and DD just being able to go outside instead of watching a video when I need a break... No more sirens blowing by our house all hours of the day and cussing, screaming neighbors, etc... I can't wait.
Hey, if any of you live close by (WA) you are welcome to come play in my yard!