Buy two properties with PMI?

[Brian Murphy]

Hello everyone!  I have a question... 

I am selling one of my properties and want to reinvest. Should I put 20% down on one place or should I put 10% down or 2 places? I am definitely leaning on buying two places. One will be my new primary residence (since i just moved to a new state) and the other will be a second home which I can Airbnb when i'm not there. I know paying PMI is not ideal, but it might be worth getting two places now and having them both appreciate over time. Any thoughts?

[Jaysen Medhurst]

I'm not familiar with mortgage terms on second homes, @Brian Murphy. I didn't know that you could put down less than 20%. One stumbling block may be the higher leverage pushes your DTI too high. Another may be the amount of time your vacation home is Air BnB. The IRS has limits on how much you can use it and still consider it an investment (therefore claim expenses, depreciation, etc.). If you want it to be an investment, you may not qualify for favorable second-home financing.