Huge House Equity - Lots of Debt - Cash Poor

Ok PF. Need a sanity check here. Details up front:

Wife and I early 30's
Married with 1 kiddo
Living in Silicon Valley - basically b/c we like the weather

I work remotely - Earn ~ $150k a year
Wife (medical field) - Earn ~ $120k a year

Debts:
*Student Loans: $230k @ 5.6% (paid down from $320k)
*Home Loan: $700k @ 3%
*2 Cars: $50k @ 1.99%
*No credit or other debt

Assets:
*House: $1.2M
*Cash: $10k
*401k: $100k

I know I should sell the cars, hold 6 months cash for emergencies, etc - all the usual advice here. We have over $100k available credit so I usually keep a small amount of cash on hand.

I need advice on a deeper level.

I'm thinking of selling the house (tax free - lived here more than 2 years) - netting $450k after expenses. We would then like to move out of the area - it's lovely but just too expensive to live here without a reason to such as working in tech.

What would you do?
Where would you move (in the continental US)?
Would you liquidate all debt and rent a while? Roll the cash into another hot real estate market?
Pay off some debt and buy a rental property?

I've never been in a position to leverage this much cash before, and I'm terrified I'm going to screw it up. I know the easiest path is just to pay off all debt - but I also want to make sure I don't miss the optimal plan.