Saving for Down Payment on a Rental Property

[Alan Hale]

Hello my BiggerPockets people,

I have been out of the real estate investing game for a while now and I am now looking to aggressively jump back in. I recently just started a part time job and I will now be netting and saving about $2000 per month. I currently have a rental property that is about $20,000 under water and that is barely cash flowing. I also currently live in a house that I only put 5% down on last year and have to pay PMI.

My questions are:

1. Should I pay down the rental property to get it under the market value and then refinance so I’ll have more equity stronger cash flow and less vulnerability ?

2. Pay down my primary residence to 80% of the homes value, refinance for lower payments and knock off the PMI.

3. Save for a 20% down payment on a new rental property?

Current rental-3.75% interest rate PITI=$675, rents for $830

Primary residence 4.875% interest rate PITI=$1883.00, 30years.

I appreciate any and all feedback!