I have been looking into investing in property for about a year now and have had to put my first IP purchase on hold due to finance being knocked back due to APRA. With an inevitable move for work occurring in 2 years I would like to ask for opinions on future finance structuring. Current Situation: PPOR – Adelaide Northern suburb (Hillbank) Value $325k – current mortgage at $200k Single income – approx $70k gross Wife working very casually (nurse) with two kids and one planned in the near future. Currently on one income and with two kids we are saving about $20-25k cash per year. My move for work at this stage will likely be to Brisbane, where work will provide me with a cheap rental property (through DHA – I work in the RAAF) for about $500 per fortnight. At our current rate of savings I expect our mortgage to be at approx 140k-150k in 2 years time. Luckily my employer will cover all associated selling costs so all of the profits will be in our pocket, if we get a little bit of growth and I finish tidying up the house I am hoping to walk away with $200k cash, assuming we sell for 340-350k. What I have thought about doing from there is using the cash as security for deposits on IP’s instead of equity. Then with the added benefits of no mortgage with low rent costs plus the benefit of my wife returning to work in a few years (70k a year) we will have stronger Cashflow looking forward. As the IP’s value increases over time the cash used for security will be able to be released back to us to either buy more property or a PPOR. I wouldn't use all of our available cash to invest I would leave a buffer in I guess a 'savings' account that we continue to pump money into. Pros – Cashflow, renting so don’t have to worry about maintenance etc, no non-deductible debt, house purchases for investment only so no emotions involved, flexibility if I get moved for work again Cons – No PPOR to increase in value and gain equity over time, renting so can’t make the house our ‘home’, miss out on Defence loan which is currently paying $220/month off my current loan with a larger loan this could be up to $300/month I’m after some opinions on this strategy particularly with utilising cash as security with regards to future ‘release’ of cash. With the new lending environment I am thinking that this might be a lower risk strategy allowing me to have cash buffers in place. Thanks in advance for your replies.