Hi HC77,

With regard to Question 2. "Keep our current house as an investment property", I would suggest asking yourself some of the usual questions when looking at purchasing an investment property.

1. Is it in an area where there are less than 3% vacancies in rentals? (Check with a property manager in the area).

2. Is it in an area where around 30% of dwellings are rentals?  You can look up demographics for your suburb to get this figure.  This figure together with no 1. also indicates what the demand would be (although vacancies percentage a better indicator).

2. Is it in the right price bracket for rentals in that area (an indication of the rental demand for your property).

3. Is it in a good location that is accessible to public transport, shops, schools, etc?

For what it is worth, as much as I love my current PPOR, I wouldn't keep it as an investment property due to its proximity to public transport (I drive everywhere) and it would be above the price bracket of a standard rental, therefore would be in jeopardy of it being vacant for too long. 

I would get a property in a better location and lower price bracket as my IP.  Also then, because it's in a lower price bracket, perhaps I can then afford a 2nd IP sooner than I otherwise would have.

Good luck!