Hi silverghost,

I’m happy that we can share this thread togther, do you mind if I have a try at answering your problem? I guess the credibility of my answers are questionable due to my lack of experience and time spend on this forum, but i’m sure there’s heaps of people to prove me wrong and i guess we can call is a learning experience for both of us – the beauty of these forums

Can I ask why you’re reluctant to use your current house to finance future investment properties? theres hundreds of thousands of dollars of usable equity you could tap into… I would love to be in ur position!!!

If its because you’re afraid of losing your current home to the repo man due to vacancy concerns of your investment property, i’m sure it would be very unlikely you’d encounter this situation, provided that you’ve done your research regarding vacancy rates in the area you wish to buy before you purchase ur property, and that you have enough funds put aside to cover for this From what i’ve read the possibility of vacancy is always accounted for in the initial outlay of costs when assessing whether a property is considered a good investment or not.

Regarding your question whether you should pay off your first investment property before buying the next, or whether you should keep buying more properties as more equity becomes available, as you mentioned you are interested in creating positive cashflow, i think the latter strategy better serves this purpose, as the positive cashflow you want to achieve is the accumulation of many separate, smaller cashflows from many different investment properties.