TL;DR
My grandmother is going to pass away soon. I need to decide if I sell our house and move in.
I am married, 32, and have 4 children-#5 is on the way due in June. We have a home in North MS that we owe approximately $250k on, purchase price was $350 with $80k down at purchase. We have it on a 30 year at 3.125% interest. Our payments are ~1100 per month on the mortgage and around 150/ month for insurance and taxes. Our home is currently worth around $400-420k. I make $45k currently, but will be making around double that amount in a couple months after an imminent promotion at work. I also do side jobs when able and have started a homestead on our property to help offset costs and potentially sell some items locally. Our property has a 2 bed 1 bath apt on site that we currently rent out and have stable tenants.
My parents have a 30 acre farm in North MS. Most of our extended family lives close by and has similar acreage. My parents will be leaving the land to me in their will, and my parents house and 3 acres will go to my sister and her family.
My grandmother has a house that is connected to the 30 acre farm that will fit my current size family. She is in poor health and is most likely going to pass in the next year. After her death, my father will inherit the house. My parents have said that they do not want the house, and instead want to gift the house to me.
My thoughts, and please be brutally honest in your opinions, are that we can either a) sell our home after my grandmother passes. We would invest a large amount from the sell, do some renovations, and maybe take a nice vacation with all of our kids. Or b) Keep our current home and rent it out. Comps for our area are approximately 2200-2400/month to rent our size house with the land we have, we would also keep our current tenants, which pay 600/month. If we did this, we would be able to put back some money to begin investing into growing a real estate portfolio with not much risk-in my mind. This is because we would not be adding any payments, but would continue to pay our current mortgage and live in a different home for free. If for some reason this did not work, we could always sell at that time.
I am just looking to have help thinking through this and see what might be best for our family. I welcome any questions and thoughts!