Moving home to clear and free house

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Hello Everyone, 

I wanted to come here for some advice. Currently I am living in a one bedroom apartment that I am renting for $1100 in Austin near my job in the south. My wife works in in the Round Rock. I own a house an hour away that is free and clear excluding tax and insurance. I am renting this out right now to my mother in law for $700 a month. My thinking is to move back to the house and start saving, paying off credits, and planning to invest in that city. The drive would be easier for my wife but tougher for me which I don't mind, but I wanted to see if this would be wise. Of course I know living in the house wont exactly be free, but I am not having to pay rent for it. My mother in law doesn't mind moving either. 

This was my idea: Using my house as like a central hub and then branching out by saving enough to put 20% down on duplexes and Triplexes after I have cleared my debts and increased my credit. Let me know what you think.