Would appreciate some feedback on my current scenario and options to consider regarding my current property and our next move. Current Situation: House Value: $350K Loan #1: $210,000 - mortgage (P&I) Loan #2: $60,000 - LOC (IO) Loan #3: $60,000 - Margin Loan (IO) Mngd Funds: $120,000 (made up of Loan #2 and #3) Mortgage Payment - $650/wk Household Income - $120K per year, no other debt This has been set up for purposes of 'debt recycling' with income from mngd funds going against Loan #1, and then Loan #2 and #3 increasing as equity allows etc... I have been fortunate enough to be provided a $100K gift from family towards purchase of an additional property (funds only available on purchase of property, not for use on current loan). I am trying to determine if I would be able to keep the Current Situation above and realistically use the $100K to purchase another property of $400-$450K value. Could rent my current property out at $350/wk (current rate in my suburb) My questions: 1. Is it likely a bank will lend $350K based on $100K deposit, and maintain the existing situation. 2. Assuming, Yes. What considerations are there in the way I might structure the loan on the new property (I have visions of turning the new property into another IP at a later date). 3. Am I just better off selling House no. 1 and Mngd Funds and using money from that to buy new house? 4. What other key considerations should I be thinking about? Any feedback much appreciated. Thanks.