Post is partly a case study, partly a thank you to those broken records out there who bang on about interest only, offsets etc. For PPOR I had a 30% deposit, for the IP's I borrowed the 20% deposit and stamps against the PPOR using split loans, and took an 80% loan against the IP. No crossing, no LMI but all loans with the same lender. I did everything the boring, slow conservative way. Save up cash, buy when you feel comfortable. It can and does work. PPOR (Sydney southern suburbs 2/1/1 unit) Purchased Sep 2010, $385k, current value $550k-$600k. Current loan balance $250k (I/O variable) with $250k in offset (i.e. makes my day to see $0 interest debited each month). IP#1 (Sydney southern suburbs 2/1/1 unit) Purchased Jul 2014 $450k, current value $550k-$575k. Deposit & stamps funded by split I/O variable loan against PPOR ($108k), remainder $360k 5yr fixed rate loan against the IP. IP#2 (Canberra southern suburbs 2/1/1 unit) Purchased Jan 2016 $320k. Deposit & stamps funded by another split I/O variable loan against PPOR ($74k), remainder $256k I will likely fix for 2 years on settlement. Overall negative gear will be about $4k per year combined after depreciation & after tax refund. Total Property ~$1,420,000 Total Loans $1,048,000 Offset cash available $250,000 PPOR will probably become IP#3, with the offset cash used to buy a future house. Pausing for now for a bit to diversify into shares for the next year or 2. Probably good timing with all the market gyrations. In hindsight probably shouldn't have fixed for 5 years on the first IP at 4.89%...but I guess the excitement of getting a rate under 5 guaranteed for 5 years was a bit too much! Not an immediate issue now but serviceability became an issue. Bank wanted to throw money at me but the computer kept saying no. Last May they said I could borrow a further $550k... but in Jan when I just went for this one it was a struggle to get the $330,000. Assumptions relating to P&I, assessment rate, household expenses cut very hard.