We're a very-new-to-Mustachianism family of 5, with three kids ages 12, 10, and 7. I am homeschooling the kids and working on lining up some kind of side hustle that will bring in additional income while allowing me to continue doing that. DH commutes 15 miles to his job M-F, which given Seattle-area traffic, sometimes means a 45-60 minute drive.
We've made some major changes in our financial picture, but at ages 50 (me) and 44 (DH), we worry that things like making our own granola are a bit like putting a band-aid on a gunshot wound. We like the home we purchased in 2016, but it has a yard that requires constant above-average maintenance (which we've paid thousands to outsource in the past), it needs to be painted very soon, and we will probably never be able to afford the cosmetic changes we think it needs (replace old carpet, replace worn-out deck, a kitchen that has a horrible flow with wasted space, etc.). Perhaps more importantly, we feel zero ties to the community even after living here for 3 years. I recently heard a podcast with Mr. 1500 where he talked about a home-buying mistake. The town had not voted to pass a library bond, which indicated to him that it wasn't a good fit for his family. We experienced the exact same thing here shortly after we bought our home.
I'm trying to keep this brief . . . we found an apartment building that feels like it would be a great solution for us. Obviously, it would be a huge adjustment in many ways, but with a walk score of 96, DH and I think it might be a fun adventure that would also allow us to save money for a few years. I'm inquiring here to ask whether our back-of-the-napkin math appears accurate to you all before we make such a huge leap. Let me know if there are more details that would help.
-- Current home:
Original purchase price - $432K. Mortgage amount - $415K. 30-year fixed at 3.875%
$388K remaining
$2525 mortgage payment includes taxes/insurance
Appraised in April 2019 for $510K
Redfin estimated value: $571K
Redfin estimated sale price: $543-600K
-- Additional debt: Student loans - $31K at 3%
Car: $465/month. $21K left to pay (Ouch. I know. I hate this payment. TBD.)
-- Current monthly expenses: ~$6500, including saving $250/month for EF and $300/month for home maintenance fund
-- Income: $172,000 (Salary $150K with annual 15% bonus). Instead of pilfering away that bonus next year, we plan to aggressively pay down DH's student loan.
-- Assets: $3K - second car
401K - $70K
Employer stock (awarded annually) - $20K
-- Potential Apartment:
$2700/month. ~1300 sq ft. 2 bedrooms + study. Includes garage parking and additional monthly pet fee.
Walk score of 96 in a small city
Location allows for DH to take a 23-minute bus ride to his office ($2 round-trip). We would go down to 1 car.