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|I'd start with the dumpster. Clearing out everything you KNOW you don't want will help you get clarity on what is most important to add. Chuck in the nasty old carpeting, the chunked-up sofa, etc.
Of all the things you listed, the sofa is the thing I'd be most inclined to get used. Your kids are going to trash a few more sofas before they get old enough to sit down like civilized people. New hard flooring in your living room is the think I'd be most likely to pay somebody to take care of immediately. And a fenced yard is something I would start a savings fund for.
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