Weighing my options -- juggling

I have an amazing and supportive family. My poor sick mother has tried her very best to be my pillar through all of this. Even in her weakened state of health, she continues to be a source of strength for me. (thank you mom!)

This post will be a list of positives and negatives. My family owns this little tiny house sitting on 5 acres in the county next to us. It used to be my great grandmother's house. It is situated directly next door to my 90 year old grandmother, and my family has told me if I need to live there, I am welcome to it. My own house (like most home owners right now) has negative equity. There is the chance I may be able to rent it out but I am unsure if I would be able to come out even each month. Short-sale is also an option, however that in itself takes a huge hit on my credit, which currently is pristine.

So, here are the Positives and Negatives to me moving. Any reader's thoughts/wisdom/input is welcome.

Positives:
1. Rent/Mortgage Free
2. Five acres to garden, and to allow my children to play in.
3. Next door to my grandmother, and will be able to feed/check on her daily.
4. In a better school district.
5. Has a detached shed/garage.
6. Same distance to my current employer.


Negatives:
1. The house is on a road that has a 45 mile an hour speed limit. (however my parents have offered to help put up a fence for the kids)
2. It is 800 square feet. Tiny tiny. Our current house is approximately 2200 square feet.
3. Next door to my grandmother, who can be moody and temperamental.
4. Further away from potential employers.
5. Kids will have to share a bedroom, the cottage is only a two bedroom house.

The question has been raised...will I homeschool next year? I have no answer for that right now. I know that if my husband is unable to find employment that has benefits and I'm offered a teaching job, I'd have to accept it. That would make homeschooling impossible. I have put in for a few jobs in the surrounding counties, but I feel my best chance is to be rehired in the county I stopped teaching in a few years ago. Having said that, this house is not within commuting distance to that county. It's about 70+ miles away.

If I move now, I have the potential to have a magnificent vegetable crop at this little property. With all the space to grow, I could drastically cut our food budget. So, anyway, here are my options, the pros and cons. I am open to suggestions.