This is a decision that only you can make, but you need to be wary of the factors that go into this. It boils down to are you ready to go into the land lording business? Make no mistake, that managing a rental property is neither easy or automatic. There can be vacancies, non-paying tenants, and of course repairs.
You may have tenants that demand light bulbs be replace the moment they go out, which may happen at very inconvenient times. Along these lines are you prepared to learn about all the laws that surround this business, or hire a lawyer to assist you?
What makes this risky is that you are borrowing almost all the money to launch this business. Consider a person that purchase the latest weird flavored cookie, from their local grocer, and attempts to resell them online. Those cookies may not sell, and this person may be stuck with all these treats. If that guy used cash from his bank account, then no big deal. Sure he lost money, but none is owed to anyone. If, he financed it all on a credit card, and there is no money to pay the bill, then what happens?
You are very much in the latter situation with what you propose. If you have a tenant that pays the rent on time, well all is good. If you don't then what do you do? What do you do if you have to purchase a new furnace or water heater? What happens if you get sued for discrimination in your application process? Will you hire a management company and if so how does that get paid for?
If there is a plan to mitigate all these risks, and you have an interest being a landlord, then yes this could be a very profitable business. If not, and this level of risk, then this could be a disaster for your family.
