Pay off PMI on first house vs Save for Rental Downpayment?

[Aditya Kohli]

Hey all, I just closed on my first house with downpayment < 20% and hence I have a PMI on my loan. I have a monthly PMI of ~140$ per month. My next goal is to have a rental property in next 2 years and I was wondering that should I pay off my PMI first with extra payments (estimated time 3 years ) or use those extra payments to save/ low-risk recurring investment to be used for a downpayment of a rental property ?

PS : My mortgage rate is relatively low and renting out part of the house gives me flexibility to have some extra money 

[Billy Daniel]

It's probably not helpful, but it depends what your goals are.  The dollar figures matter.  Could you save up to 20% for a property in your area in 2 years?  Would you have money to do some rehab to force the appreciation?  Would you be better off putting that money into your own house to force appreciation instead of looking for an investment property?  There is a lot to consider and there really isn't a wrong answer as long as you are being smart with it!  Good luck and I'm sorry I wasn't more helpful!