At some point, I'd recommend you buy everything. Especially as it seems you're likely to be doing more diving this year. One point to consider is that there is a slight chance that you or your wife won't be able to get certified for medical, comfort or other reasons.
So a big upfront purchase might not be the best solution now. Habitat rents ScubaPro gear, one of the better brands, so assuming their gear is in good repair, it might give you an opportunity to try before you buy. Although I can understand not wanting to spend a lot on rentals.
What reg is "$400 on sale for $200"? Someone here can probably comment on them intelligently if we know the make/model - new/used? Good enough? It's your call. I dove with Dacor regs for years, now own one of the best - an Atomic T2. There is a noticeable difference in how they breathe. But I'm $1400 into the reg. My buddy has mid-range gear, mostly Oceanic, he's never had problems with it.
I bought my first BC before my checkout dives because it was discounted thru the class and I let my LDS convince me it was a good idea - they didn't have to work too hard at it
- then bought regs a couple months later on sale once I'd read some reviews and knew what I wanted.
fwiw, one of the best divestores I've ever been to is in Ft. Lauderdale, just off the interstate south of the airport. Divers Direct - they have more gear in one place than I've ever seen and seemed like reasonable prices too. Scubatoys.com is another good option, they have Internet pricing with mfr's warranties.