Need advice what to do next

Hi Everyone,

As I also need some advices from Finance experts, I create this topic here,

Background:
I have 2 properties. 2 loans are with CBA with interest rate 6.43%.
P1: $308k mortgage. Current market value is about $480k. I pay $2,350 (principal +interest) per month. Current lease $450 pw and will increase to $460 pw after 2 months.
P2: $523K mortgage. Current market value is about $630k. I pay about $2,800 (interest only) per month. I live there and rent out 2 rooms. I got rent for $410 pw,

My goal is to be financial freedom. So I am seeking cash flow and possible capital gain (equity).

I plan to purchase my 3rd invetment property (< $500K) in 2 or 3years. I currently have about $20K cash in the P2 offset account. I save about $40K per year.As now both properties are negative geared. So my question will be what I should do next.
Some ideas I can think of to change my current situation:
1. Change my P1 loan to interest only or fix. So the rent can cover the mortgage and I can save extra cash(about $500 per month). Wait for few years, change the loan to principal and interest again when the rent picks up.
2. Partition living room to create an extra bedroom in P2. it will generate extra rent about $130pw.
a. If I still live there, the total rent received will be $540. still negative geared.
b. If I move out, I can get total rent about $700pw. It will cover the interest loan. But I will need to find other place to live and it costs me.
Should I wait for few years to have enough cash/equity to purchase 3rd property and move out? Or just rent a place?

I really want to create my portfolio. Can anyone please give me suggestions? Thank you very much!!!

Kind Regards,

Eric