Buying Second Investment Property

[Bryce Brown]

Hello,

I am 24 years old and new to real estate investing, and I picked up my first duplex in December of 2019. I have been house hacking and living in the upstairs while renting out the lower unit. I recently was approached by someone interested in renting out the unit I am currently in. I was going to rent out both units and the property should cashflow roughly $400/month. 

I got a Homeplus loan on my duplex and put 5% down. I was looking at picking up another duplex or single family since I would have long term tenants in the duplex. I contacted my lender and he advised I am only allowed PMI on one house. I either need to reach 20% equity in my current duplex or I need to put 20% down on the next property I buy. I currently only have about $10k to put towards another property.

In addition, my lender advised with my loan there is an expectation I live at the property for at least 1 year. I don't want to jump the gun on purchasing my second property if financially it doesn't make sense, but I also don't want to pass up the opportunity of having two good long term tenants in my duplex.

Are there any other strategies or ways for me to get another property without having PMI? I could take the money I have and put it towards my mortgage and that would put me at about 20% equity in the duplex, but then I wouldn't have much cash leftover for another property. Would it be best for me to rent out both units and crash at my parents house for a few months to save up even more money?

Any advise is appreciated.