Need Help on Family Decision- What Would You Do?

[Derrick Paredes]

Hey everyone!

I am really new to real estate investing (couple flips and some wholesaling), so I could really use your help. This decision will affect my small family, so I am sort of hesitant to make any quick decisions. Here is the story:

I bought a home in June of 2015 for $210k in a good neighborhood and this was a great deal. I put some money down and now owe $195k. The prices in my area have gone up dramatically. Our plan was to keep it for 2 years, sell it and then take the money we got to build on a 2 acre lot that we have and live mortgage free. Well, the time has come. 

I put the house on the market for $309k and got a deal under contract for $295k. Now comes my dilemma. I am not sure if we are going to stick to the original plan which leaves me right under $100k to build which will have to include clearing land, impact fees, and actually building or going another route. It is possible around here if you are willing to live in a 1200 sf home and have family of contractors on both sides. We were thinking of just sticking it out and living in an RV while we use the money to build. However, I want to know what would you do? I can take the money and buy a home in the area for around $50k, put around $30k into it and resell it for $120-$130k while we live in it, allowing me to make more money out of the deal. Of course, this would delay our plans to build and live our mortgage free life and not necessarily guaranteed that I would make that much. I am not sure if I am missing something or any other options.

I know everybody's circumstances are different, markets are different, and expectations are different, but I would like to hear from you. I am married to a very easy going and understanding wife with 2 young girls (3 years old and 17 months) if this helps to see from my perspective. So what would you do? I am open to all suggestions.