Wow, congrats! I think you are going to have a lot of FUN in this process, since your wife seems to be completely on board and your kid is young enough not to miss a thing and will surely love doing free or low-cost family activities + getting lots of grandparents time. Also, sharing a 4,000-s.f. house does not sound like a terrible hardship, but in fact potentially kind of great, so long as all the adults get along. Enjoy this time of fun, productive, non-consumerist family unity!