Should I sell to free up some cash??

[rufalina]

What is your equity like? Can you take out an equity loan (are the banks still doing these in this market) and use that money to start up the business. You might need to look at a second tier lender for this, and you would need a good business plan, which I know you have, but it would allow you to keep the place and the money from the business can pay the loan and get you going?

[Pandora]

yep I was going to suggest the same as rufalina, or borrowing more against your house, given you are in a good area that will go up in value.