Why would you even be paying capital gains? Do you not qualify for the IRS exclusion? If it's because you haven't owned the home long enough, stay put until you qualify for the free money the IRS is willing to give you. Why didn't your CPA mention this? Absent a Very Good Reason, replace that CPA asap.
http://www.nolo.com/legal-encyclopedia/the-250000500000-home-sale-tax-exclusion.htmlNext, Realtors
lie can be overly optimistic about what your house will fetch to get your listing. Don't believe that your numbers will be as high as projected.
As a been there/done that FIRE'd person, I humbly offer the following list:
1.) Despite what you'll learned from the link above, don't sell the house just yet. Transaction costs are always more than you think they will be, especially of you sell
and buy.
2.) Get a roommate. The number of people who have roommates and actually report the income is very small. Do or don't, as you wish, but it can be the easiest money you'll ever collect, especially with such a big house. Interview carefully and use the money to get rid of the PMI, build the 'stache or both.
3.) Consolidate the student loans with SoFi. If that doesn't work, consolidate elsewhere. Then decide on a payoff plan that may or may not be accelerated. Lots of information on that topic around the forum.
4.) Wait to start the baby factory. Another year or two or three with dual income will allow you to get on firmer financial footing for the rest of your lives. Try banking all of wife's earnings in the interim. Alternate plan is to wait until you get to X earnings level, or X job title.
5.) I don't see anything about cars or commutes. Make sure you're as aligned with MMM principles as is feasible in your situation.
6.) Use this time to plug all budgetary holes and get comfortable living on as little as possible.