<prompt> Human: I am in a peculiar situation. Single Homes in our area generally range from 575k-700k on average. My wife found a foreclosed house for 465K bank owned but it easily needs 50k of work. Our current financial situation is tricky. MY wife and i are both 30yo - 820 fico score Combined Income - 185KSavings 153K - This is made up of savings checking and stocks that are easily liquidated Current House - Mortgage left 155K Paid 220K and put in 50K in repairs - Market value 275KStudent Debt - 155K Remaining. This is where it gets tricky. Its at 0 and i borrowed the money from my dad. He said not to give it back but it will be a cold day in hell before i fail to repay my debts. We have already paid back about 130K 280k total borrowed and at our current payment rate will have it completely paid off in 4 years. Other Bills - 500-1000moCar Lease 232mo We would like to have our first child next year and want a bigger house which will become our forever home. However, i know kids can be expensive. So i guess the question is can we afford it.  <response>: If you sell your current house for 275k after paying off the mortgage and closing costs that is just enough for a 20 down payment, leaving about 350k in house plus 50k in repairs. If you throw 70k more from savings at the downpayment and 50k at repairs that leaves you with 33k in savings and financing 280k. So your monthly expenses are the same as now if you get the same interest rate. There are a ton of variables, repairs could cost more, closing could cost more, the house could sell for less, you still have to pay moving expenses, etc. But if you are comfortable with only having 20-30k in cash reserves or can afford a bigger monthly mortgage payment go for it. Your monthly expenses are low compared to your income so I dont think this should be hard to afford even if you add a child to the mix next year. 