[quote=spdrun]1. A primary residence isn’t sacred. It’s an investment like anything else. Nothing wrong with selling it and downgrading.
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No it’s not, it doesn’t generate income And you’re not even going to find something comparable ever so slightly less unless you sacrifice the area you live or if sacrifice significant square footage.

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2. You save $30,000 right there if you don’t use a broker. Go with a discount agent, let the title agency handle the sale. Done. I don’t see why closing costs should exceed $10,000 without a broker involved.
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Oh please stop with this “if you don’t use a broker nonsense”. While you might be a genius when it comes to real estate, the average person does not or cannot deal with not using a broker.

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3. Who says there’s only $170k of equity? I’m assuming the OP has paid some principle and also had a down payment on the residence. He should get that back as well.
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Because the first few years of a 30 year mortgage goes mostly towards interest. Total principal pay down will be roughly $15k on a $300k borrowed at @ 3.5%. It will be less, if he/she borrowed more or borrowed at a higher rate.

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4. If he buys a 2/1 outright or nearly outright, he can live for $1000 per month. Maybe $500 per month if he’s lucky. Then he’ll have a whole lot of money to pay off debts and a condo that can be paid off in 10 years, if not immediately.
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Good luck with that one….Unless you want to live an a crack area.
For reference a 1/1 in mira mesa, people are starting to ask $200k for it, and some have sold pretty close to that.

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5. Paid off debts + small housing nut will mean that he’ll be able to save to buy another investment soon. Or just work less and travel a lot. Living below one’s means rocks.[/quote]

Person is saving by paying of their home’s principal loan anyway.