First post here...loving the Mustachian mindset!
Here's the details:
We bought our home 2 years ago for $170,000, we currently owe $130,000 and our mortgage payment is $600/month.
Since then, the market in our town has gone up, and coupled with a full diy kitchen & bath remodel and extensive updates done over the past year, we could sell for $250,000.
Here's the dilemma:
Husband wants to sell the house and net $120,000. Use $30K to pay off student loans (our only debt) and put $75k towards a down payment on a new house. (New to us...we have our eye on the historic section of our town). Invest the rest. Live debt free (except for the mortgage, which we would pay off aggressively) and go from there. Live frugally but without stress of big debt.
Wife thinks it's best to save up for a 10% down payment for a house in the historic neighborhood, rent out our current house (rent would be around $1600/month), and use the income from rent each month to pay off student loans, and have a nice asset for retirement in 30 years. Scrimp big time in the next few years.
We're 30 with 2 small kids and are just beginning to invest. Both neighborhoods are within walking/biking distance of husband's work, wife works at home. Meager earners (teacher and self employed writer).
Ideas? Suggestions? Holes to poke in either plan?
Thanks in advance for your help!