Is what I’m doing stupid? Personally and financially

[Jeff Castro]

Is what I’m doing stupid? Please, all opinions welcome.

I’ve turned our first home into a short term rental property. Mortgage is $3,000 and I’m making around $1,000 after all expenses. It’s been steady and I’m booked pretty much the rest of the year.

Goal is to save enough to put 20% down on a higher end investment property in San Diego area as our 2nd property. The idea was to save money living with in laws and make money from home.

I have a family of 5 and it’s been tough living with in laws.

I’ve been thinking of renting a home for around $2,000 but we wouldn’t have any furniture since it’s being used by short term rental. I would need to buy at least some basic furniture and appliances. Like washer dryer, tables, couch, etc.

What is the best financial move here? Is it better to move back to my short term rental home and just save slowly or is it better to rent a house that is cheaper than my mortgage plus the extra income from short term rental? Downside is having to buy some furniture and appliances if i were to rent.

Please, any advice is appreciated.