>Our dream home has a bit more room and is in a good school
>district but it’s not huge but it won’t need any major
>upgrades and will have 2 floors.. lol.
>

You should easily net over 100k after fees (and no taxes) if you’ve got that much equity. That’s at least 20% down on a 500k house, or 33% on a 300k house if you want to keep your mortgage in check. And you’d still have some money leftover to put towards other debts.

I’d vote with selling your house, taking your equity and moving into a nicer neighborhood. Buying another fixer upper would give you the best bang for your buck (plus you could have the capital to fix it up before you move in) but the biggest driver of appreciation would still be location.