Fix up and sell current home, probably about $25k in total costs (house would have little to no equity even after fixing up)
Move to better school district for DD, pay $125k for a 3/2 town home w/basement.
Leaves me with $850k. DH would quit, I'd keep my FT work from home job (5 weeks vacation, 12 sick days, 401k with match, awesome low cost medical). With no debt we could live off of just my income and not touch the $850k. I'd probably work until we had enough to pay for DD's college in full, help MIL in her old age if needed (she has no assets other than her home and is at high risk of future strokes, so we'd like to be in a position where we can help make sure she's in the "nice" nursing home if it comes to that) and have enough 'stache to live comfortably. At most I'd only work until 59.5 (DD would graduate college that same year) but ideally as early as 55 (I'm 39 now), maybe even earlier depending on market returns and other unforeseeable events.
Really, it's the same plan we have now, we just would be able to do it 7 years earlier than planned* with a much bigger 'stache and a better ability to help MIL if it's ever needed.
* Current plan is to fix up home/save up down payment over the next 2 years, move, pay off new home loan in ~4 years, DH works 1 additional year to beef up emergency savings, then he can tell his employer to go fuck themselves. With no debt, we can live off of my income/benefits and I can retire between age 55-59 depending on if we decide to help DD with college costs and to what extent.