Put 20% down to avoid PMI or set up as 1st and 2nd mortgage?

[Zach Ogden]

Hello BP! 

I am in the process of working with a mortgage broker(1st time) to get pre-approved to purchase an investment property. The broker asked "Are you wanting to put 20% down to avoid PMI or set it up as 1st and 2nd mortgage with a HELOC to avoid PMI?". With the latter option, I could put a minimum of 10% down.

My gut feeling is to put 20% down and avoid taking a line of credit for my first purchase. I would like to get another perspective from you wonderful people. Any advice is much appreciated.

Cheers!