How do I manage this?

I have 50% an investment property in Australia, which costs me about $1300 a month (at a variable interest rate currently just below the 8% mark), and have just purchased a my first primary residence in the United States. I am taking a mortgage of $296,000 on a 7-1 year ARM (at 3.125%). Previously, I was renting the past three years at an average cost of about $1500 a month. It felt like wasted money, but then again, it appears some of you in the financial world tend to believe that renting can be beneficial. I do not know if I am going to be in the US over the long term - hard to tell in my line of work - hence why I took a 7-1 year ARM. The investment property yields about $900 a month in rental income. How would you go about managing these two properties whilst attempting to set aside some money for saving, 401k, living etc? Recently, my first child was born and I am starting to think long term about what he may need in the future, with regard to education and the like? I need some serious help determining what makes the best financial sense. by ARO1975 from New Haven, Connecticut. Apr 4th 2011 Reply