Add ADU & convert home to Duplex, then move?

[Benjamin Orozco]

I want to hear everyone’s opinion on what strategy they would prefer to use in my situation.

I own a single family home and 5 rental units.

On my single family I have the choice to convert my garage to an ADU studio 400sq ft and rent it. I would then rent my home as well which is 3 bed 1 bath. Move in 2 years from now and buy another home and live there. By moving and buying another home and essentially moving up in neighborhood with lowering my monthly mortgage but increasing my debt and leverage, however also creating forced appreciation on the new home and have plenty of opportunity for appreciation as I will be buying in 2 years from now where house prices can go down in my market.

If I’m happy where I live and I am consistently investing in real estate would any of you move using this strategy. I am happy where I am live now, however I like the idea and can visualize lowering my monthly mortgage expense as Scott Trench mentions in his book set for life that Your mortgage expense is your biggest living expense. By making this move I would save 1000 a month in mortgage. Create two more rentals for myself and move to a better neighborhood and schools.