$130K is take-home pay under $7.5K/month after taxes and $10K in 401k, assuming generous employee match, married, 2 dependents w/ standard deduction, $0 for wifey’s IRA and employee covered insurance. Your marginal rate is 25%, but since you itemize you forfeit your standard deduction and assuming you cheat by claiming MR your “effective rent” is closer to $3.5K.
Your fixed monthly expenses are:
$3500 “effective rent”
$500 principal
$100 HOA
$300 cable, phone, misc utilities
$600 car payment (entry level sedan and minivan)
$500 food
$300 gas & car maintenance
————————
$5800
You are left with $1700/month to cover medical bills (two kids – what are the chances at least one will need braces?), landscaping, clothing, electronics, furniture for your new house, vacation, preschool/school supplies, birthday parties… you will be able to set asside few hundreds/month, if that, to recover your $130K downpayment.

I am not saying it is impossible, but it sounds very risky and the engineering types with a spouse and two kids, that you count on, are usually risk-aware and rarely accept prayer as a convincing risk mitigation plan.

BGinRB,

You really underestimate the cost of food. I did too, until recently when my financial advisor required my monthly expenses and I was forced to add up transactions on my cards saying “Vons”, “Ralphs”, “Costco”, “Trader Joe”…. For a family of 4, the food is at least $1000, could be even $1500. unless they eat only mac&cheese.
But except for that, you make a very good case.

Another issue that one may want to take into account when comparing rent vs. own: cars, gas, car maintenance and insurance. If one rents close to work/school and in walking distance from parks and grocery stores and if buying means moving further away, requiring 2 cars, driving anywhere and a significantly longer commute, that will drive up the costs of transportation a lot.