To PMI or NOT to PMI?

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Trying to acquire a house for rental purposes, long term strategy is to rapidly build a rental porfolio

Purhcase Price is about $55,000 two financing options available:

1. 90% loan which will be at %7.25 interest and tie up $5500 down payment..will also cost and additional $468 in private mortgage insurance(PMI).

2. 80% loan, @ %7 interest, will tie up $11,000 down payment, but will save the PMI ($468 a year) and a %0.25 in interest and ofcourse financing less which will lead lesser payments and lower interest paid.. the total savings of interest saved, PMI, and cost of barrowed less funds will come out to about $90 a month which is about $1080 a year savings over finance plan #1..

which way is better to go? doesn't make sense to save the $1080 by paying an additional $5500 upfront (thats 20% return vs a 5% I would get from interest earned on a $5500 siting in the bank, so I am ahead 15% a year)..

lets assume I will have enough funds to keep with the possible business pace to rapidly build my porfolio of rentals...

please experts ...help me out.

Thank You