Understand the value of free time!, you might get lulled into this not having to go to the "office" every morning. But remember! The idea is to make this permanent! You have to work your ass off starting now. (Move or not). It will be cool to move to the valley, but don't loose focus. And make deadlines and stick to them. Deadlines are your friend.

Btw, I heard that your co-founder is a fucking genius, with complete qualifications (what with getting his ass kicked out of grad school :)) !