I feel like I've accomplished so much in the 2 months when in reality it has been the culmination of a lot of research/study to find the right strategy for me. I felt like the only way to learn more was to bite the bullet and jump in. In last 2 months I have invested in the managed funds that I think will give me a reasonable amount of capital growth but will generate at least $10K per annum income and 3 days ago I signed the contract on my first investment property. A beaut little renovated 3 b/r for $210K which should rent out at about $230-240/wk. Growth in the area has been running at between 22-27% in the last 2 years and I have researched the market very carefully to see what potential lies out there still. Even at a 5% capital growth (on which I based my conservative workings) I am still doing OK. I'm in a little quandry as to my next step. My overall aim is to gradually replace my salary. I would like to pay down my LOC which is paying for the investment property to a point where the house is cashflow positive. I'm not sure however if this is the fastest way forward. Would it be better to reinvest my surplus in more managed funds therefore generating higher income? I'm at the same point with some shares I owned previously, I can either hold on to these (I am pretty fond of my Fosters shares for one!) or I can see them now for a small profit and either drop back into my LOC or buy funds. These are worth about $20K so I could do a lot with the money. I would also like another property very soon however I only have about $100K left on my LOC to play with and there is another beaut little 3B/r I have my eye on. I've had to be very conservative and careful as my husband is financially illiterate and debt scared. I think I've done very well to get this far! Mainly due to the great advise and info on sites such as this one - Thank you all! Any suggestions on the road ahead would be really appreciated.