A strategic review, not a sales pitch

How to buy a $700k home without making ourselves miserable.

Today is not about convincing anyone to buy a house. It is about answering one question with numbers, tradeoffs, and a clear path.

Can we buy a house we actually want while preserving flexibility, emergency reserves, and our long-term wealth plan?

The short answer

Yes — if we treat this as a simplification strategy, not just a bigger-house purchase.

Target purchase$700k
40% down payment$280k
New mortgage$420k
Retirement accounts touched$0

Recommendation: sell the vacation rental, sell the duplex, buy one primary residence around $700k, keep retirement accounts invested, and keep reserves intact.We are trading complexity for simplicity — fewer roofs, fewer surprises, less property management, and a home that fits the life we actually want.

We are not starting from zero.

The starting point is a strong asset base: real estate equity plus retirement and investment accounts.

Real estate equity

PropertyValueMortgageEquity
Duplex$375k($150k)$225k
Vacation rental$300k($150k)$150k
Total equity$375k

Financial assets

401(k)$350k
Roth IRA$60k
Taxable investments$136k
Total investments$546k
Real estate
Investments

Estimated net worth: about $920k+ before transaction costs and taxes.

The goal is quality of life, not property count.

Current state

  • Living in a duplex
  • Managing a vacation rental
  • Multiple properties, mortgages, utilities, and maintenance calendars
  • Multiple roofs trying to ruin our weekends

Desired future state

  • One home we actually want to live in
  • Simpler life and fewer obligations
  • Less property management risk
  • Continued path toward financial independence

If we sell both properties

The sale proceeds create the bridge from “$700k sounds expensive” to “the monthly cash-flow impact is manageable.”

Duplex estimated net proceeds$200k
Vacation rental estimated net proceeds$130k
Total proceeds before taxes/recapture$330k

Cash use

40% down payment$280k
Estimated remaining liquidity from proceeds$50k
Retirement accounts used$0
Key framing:
We are not trying to save a down payment from scratch. We already own assets. The decision is whether to convert complicated real-estate equity into a simpler primary-home setup.

Case study: the $700k decision is really a monthly decision.

Using the current spreadsheet model: $700k purchase, 40% down, $420k loan, 6.9% interest, 30-year mortgage. The condo/housing example below explains the monthly cash-flow impact.

Modeled monthly cost

Principal & interest$2,766
Property tax$1,050
HOA / assessment$250
HO-6 insurance$52
Utilities$250
Gross new housing cost$4,368

Impact versus current budget

All bars use the same $0–$5,000/month scale, so the gap reads as the incremental difference rather than a misleading third pillar.

Current housing
$3,266
New housing
$4,368
Incremental gap
$1,102
$0$2,500$5,000/mo
$4,368 new cost − $3,266 current cost = $1,102/month gap

Spreadsheet output: current net cashflow $4,642/month → projected net cashflow after new housing $3,540/month.

The risk is not the mortgage. It is the add-ons.

HOA/assessments, property taxes, insurance, and utilities can move the true monthly number by more than $1,000.

Scenario detail

Net new housing cost$4,618
Monthly gap vs current$1,352
Projected net cashflow$3,290

Click a scenario above. These numbers come from the scenario tab in the housing model.

Interactive affordability calculator

Adjust the major assumptions live. The purpose is not precision to the dollar; it is to see which variables actually matter.

Assumptions

Sale strategy

Live result

Down payment$280k
Loan amount$420k
Monthly P&I$2,766
Total housing cost$4,368
Monthly gap$1,102
Projected net cashflow$3,540
Cash left after down payment from selected sale proceeds$50k

Wage calculator: closing the incremental gap

Important correction: the current budget already includes part-time income. This section now measures additional take-home above the existing baseline of 24 hours/week at $17/hour, then compares that incremental amount to the modeled housing gap.

Target work scenario

Baseline already in the budget: 24 hours/week at $17/hour ≈ $1,768 monthly gross and about $1,432 take-home. The calculator below shows only the increase above that baseline.

Incremental gap coverage

Baseline take-home already counted$1,432
Target take-home$1,432
Additional take-home$0
Remaining modeled gap$1,102

Current baseline24 hrs @ $17
To add ~$1,000 at 24 hrs~$29/hr
To add ~$1,100 at $17/hr~42 hrs/wk
Best framingclose the gap

What we are actually buying

Not just square footage

1
Better fit for current life
A home selected for how we live now, not for asset accumulation.
2
Less complexity
Fewer properties, fewer bills, fewer maintenance surprises.
3
Preserved flexibility
Retirement assets remain invested and monthly cashflow remains positive.

Decision rules

  • Do not raid retirement accounts.
  • Keep emergency reserves after closing.
  • Use conservative HOA/tax assumptions before committing.
  • Prefer one home we love over multiple properties that drain time.
  • If the monthly gap feels uncomfortable, solve it with price, HOA, down payment, or income — not wishful thinking.

Final recommendation

Sell the vacation rental. Sell the duplex. Buy the ~$700k primary residence only if the live model still leaves us with positive monthly cashflow, reserves, and peace of mind.The financial move is not “spend more.” The financial move is “convert scattered equity and responsibility into one simpler home base.”