Need advice on next property.

[Zariyan S.]

Hello,

Myself(28) and wife(25) currently gross 160k we max out our 401k, Roth IRAs and HSAs. No kids.

Our mortgage is paid off and the house value is 320k.

We have 40k liquid cash and have a HELOC of 250k.

The house in the DFW area particularly Euless.

we’re planning to have kids in the next 2 years and school district is important for us. HEBISD (for those familiar) to me is a terrible school district. I would prefer our kids go to GCISD. however, the cost of homes are significantly higher. 

Here are our options:

1.) stay in current house, use HELOC to buy investment property and put it on rent. (Might be hard to find cash flow since DFW market is hot)

2.) get a nicer home in a better area around us.(grapevine/Colleyville) 400k range. So we have a property in the school district and don’t have to stress when we have kids, And put our current house on rent. (We can get $2300 a month in rent)

3.) Should we downsize and get another house and rent this one out for $2300? (Further drive away from my work, closer for my wife...area may not be as great as where we are now) (we’re thinking either Arlington or Grand Prairie) and then get another property in the nicer school district after 4-5 years