Timbo

I am a long time lurker very limited postings ….and I am no expert and can only give you benefit of personal experience
My advice is …..do whatever you can to hang onto the investment properties! Or at least oneof them, the equity you have in 1 iin your current residence is a brilliant start.

WHY

Reasons are:
cashflow when your wife stops working
equity
future capital gains

* My wife & I when married in 2003 had 2x IP in Sydneys east worth $950k with equity of  $400k.
* Sold 1 IP … and bought bigger PPOR as keen to get family started.
* Straight away goal achieve & 9 months later wife stopped P/T work to have1st child. So had 2x properties worth $1.2mill with equity of 450k
* Surprise 2nd child straight away  so still 1 income
* Obvious wife working very little for next few kids.

At this point even though I was always primary earner & negative gearing is good – well to a point…..but too negative is painful!?!
Had to sold IP to relieve pressure.

Since then put capital gain into reno of PPOR, it is now 950 with equity of 540. All good but kids now require more space so meed to upgrade PPOR more non-tax deductible debt to 4bdr house in Sydney with a yard, no thanks

So Timbo we are better off then some but realise should have kept 1 of the IP even the cheaper one with more equity.
Also reno looks good but look at all other IP could have owned, still planning & scheming

PS: Kids are great, the best things ever

enjoy