Hi everyone, I am somewhat new to the real estate game but have always been frugal with my money. I am in a home worth 500K and have just a 100K mortgage left till the home is paid in full. I have been trying to do the math and work out different scenarios to figure out how I can best use the money I currently have. If I pay just the minimum amount on my current 15yr loan, I will have my mortgage paid off in approx 11yrs. If I add 1,350/month on top of each payment, I can have the home paid off in right at 4yrs (which is what I have been actively doing up till this point). My thought process has recently changed because I have learned that my home is actually a liability and instead I want to funnel that extra 1,350/mo into my asset column. So the new plan will be to pay my minimum mortgage and to put the 1,350/mon. away until I have enough to purchase a rental property instead. So what I am hoping by writing this is that someone with a higher financial IQ than myself can second me and let me know if this sounds like a better option/choice.

Secondly, I am debating whether I should build up to purchase a rental, or if it might be better for me to just save up for another house to move into and rent out my current home instead. Looking at the market, I can probably rent my current home for about 3k/mo which would give me a positive cash flow or 3k-1850= 1150/mo. asset. My only issue is that I would probably be purchasing a new home for around 400K and the monthly 30yr loan would put me around 2,900-3k/mo. Meaning I would pretty much pick up a second home for free..... 2,900-3k -(new rental asset 1150)= 1,750 to 1,850/mo which is my current base payment on the home I'm in now. If I go with buying a rental, I'm shooting for a positive cash flow of 200/mo and would stay in my current home.

I know it's a lot, but my mind has been nonstop these last few weeks as I've just finished reading poor dad, rich dad, and "skip the flip". I'm just trying to figure out the best moves with my money currently as I continue to further educate myself and any advice would be much appreciated. Thanks again!

San Antonio, Texas

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