That's actually how I got my current job. I left a job, working 55-60 hours a week at a small daily (6,000 cir), because I had maxed out and could not get any more raises. I left to take a part-time gig at the state's largest daily newspaper. I worked there for 11 months and got a call from a publisher of a bigger small daily (17,000 cir) and was offered the SE job. The publisher had a subscription to the state's largest newspaper and had read some of my stuff and he wanted me to work for him.
I'd say go for it, if you have confidence in yourself and you can hold out until the right job comes along. I turned down two jobs before I took this one while working as a part-timer. I don't know if I would do it again, but it got me about $125 a week more than at the first small daily. Not having insurance for a while was hard, but I got through it. It was career suicide for me.