Well if you are in an urban area I think a yard sale would go over well -- lots of foot traffic, which is the opposite problem we have! Especially if you can collect some shopping bags for people to carry things home, I think you could sell quite a bit of things like clothes etc. If people regularly walk around to do their shopping anyway then what's the difference if they stop at a store or stop at your house? They'd still have to lug things home by foot!
And yes, people really do buy things off Craigslist, I made $160 last month selling just random cheap things we had laying around. But buyers do want a deal so you have to price accordingly. Also you could bring things to a consignment store. Or, you could set up a yard sale with neighbors, and places like churches & non-profits often have huge yard sales where they'll let you sell your stuff if you pay them $10 to set up a table.
Co-sleeping is really wonderful when your child actually SLEEPS!!