Set the DHCP ON for both routers. This is particularly nice for wireless connections when Router 1 is slow, you can flip the connection to Router 2. For hardwired connections, you can setup a batch file to flip the network settings to reflect the proper IP Address and default gateway. The method you've demonstrated forces everything to be routed through Router 1 unless uyou manually assign IPs.
Modem (provider gives 2 IP Addresses out Switch Port 1 and 2) or 2 separate modems (Cable and DSL)
Router 1 WAN connected to modem Switch Port 1.
a. Set IP to 192.168.0.1 (default gateway1)
b. Subnet to 255.255.255.0
c. DHCP ON 192.168.0.3 to 192.168.0.100 (IP Address on devices)
Router 2 WAN connected to modem Switch Port 2.
a. Set IP to 192.168.0.2 (default gateway2) (keep it on same subnet 192.168.0.xxx if you want connections on both routers to see each other, if you want connections to be isolated on independent networks put it on 192.168.1.xxx or 192.168.2.xxx)
b. Subnet to 255.255.255.0
c. DHCP ON 192.168.0.101 to 192.168.0.200 (IP Address on devices)
Router 1 LAN 1 connected to Router 2 LAN 1 (only if you want devices on either router to see each other)
