Does this plan make sense?! Am I crazy? ;)

[Sara Furlong]

Hi, all. New here. My husband and I have major student loan debt: $80K to be exact. We've been coming up with plans to kill it and at first thought we might sell our current house (we'd make approximately $16K), pay off one student loan, removing a $200/month bill, and buy a new house that is like $90K, saving us $400 on our mortgage - this would help us pay down our debt faster.

But as I look, a new option came to mind. A real estate agent wrote to me because she knew we want to live in the country. She showed me a house that went on the market on June 16 for $199K that has now been dropped to $169K and she said they are desperate and would likely take $150K or below.

It hasn't been on the market very long - about a month - and they need to sell because they're either moving or already did.

And it is a great house! Just so far beyond the houses you'd get for $150K - and it is on 2 beautiful acres with a two-story barn shed, a two stall attached garage, and another detached garage for toys. (Although it's not our dream house because we like older houses, we'd actually love living in this house for a while.)

Why isn't it selling? I believe it's due to 1. Time/the rush to sell, 2. mostly cosmetic things - stark white walls, unfinished walls in a 3-season/hot tub room, bland kitchen that could be made great with some used stainless appliances and new countertops (it is a large kitchen with nice cabinets), and just tasteful staging and decoration.

Our current home is about the price we'd hope to get this one for, so it wouldn't change our bills much.

*WOULD YOU:*

A. Sell current house for the little equity we have in it and move into a tiny house to throw more money at debt.

B. Buy underpriced house from desperate people, out equity from current house down as a 10% down payment, live there for two years and warm it up, then sell for a profit to put toward student debt (or future investments to eventually pay off student debt).

 C. Buy house with no money down, pay off the one student debt with equity from current house, live in house for two years, sell to make profit and either pay down debt or buy another house.

Thoughts?