Let's try this again:
My wife and I each make about 50,000 a year, she has about 9,000 remaining in student loans (we've paid off 41,000 in three years!) and we have a 189,000 debt on our current mortgage on a CO home worth about 250,000-275,000. We have two young daughters that have been in full time daycare for years now at around 1500-1800 a month for the both of them. We have just sold our rental property for about 105,000 in profits and are in the process of seriously considering a move home to MN in the next 9 months. We have two cars that we paid cash for (but I'd love to knock down to one) and 6 bikes that are high end, but serve various purposes that I would prefer not to argue about. We also have money in our 503bs that probably aren't relevant to this conversation.
Anyway, both of us are interested in working part time gigs and spending more time with our children in their younger years (not to mention finding some time to ourselves too.). We are considering the possibilities on how we can take the money made from the first home sale ($105,000), possibly sell the second home (~$35,00-$75,000 gain) and move back to MN (where my family is located = more time with grandparents, cousins, uncles, aunts and long time friends) where the girls would be transitioning to public school (yay, $1500-$1800 savings a month!) to a smaller, more affordable home/apartment/whatever and land a better balance of work life and personal life.
We are looking at buying a small fixer upper for mostly cash, possibly selling one of the cars and some of our excess stuff OR renting a two bedroom apartment or renting a house. I'm curious if anyone here has some ideas for how we might move this money around to best serve our emotional desires but also taking into consideration our long term financial desires. (we are more interested in living a fulfilling, free time full life right now than staching away as much cash as possible for early retirement)
Emotionally, I wonder should we pay off her loan (4%)?
Should we buy a house to eliminate the cost of a mortgage (or most of it at least?)?
Are we going to be as bike commuting as easily in MN? (I've lived there throughout early life and biked plenty then, but never with children.)
What is the best approach to balance our desire to work less, be with our children and maintain a financial safety net?
thanks for any advice!
onemorebike