PMI wipe out or new property?

[Dustin Caldwelll]

I have one rental in ATL where I use to live before being transferred to Chicago for my job where I currently rent.

I currently pay $250 a month in PMI and have $13,000 to go before reaching the 20% equity mark that my mortgage company requires before removing the PMI. I have the opportunity to take a private loan out for 5 years for up to $20,000 at a 4.75% interest rate.

I am having the dilemma as to weather I should take out $13,000 to pay off the PMI and save the $9,000 I would waste in PMI in my current pay off schedule or take out up to $20,000 to invest in a new rental property?

Based on my calculations I am estimating that for the new rental property to be beneficial I would need to buy a 100K house or less to be able to afford the 20% down my bank is requiring and it be able to generate a minimum of $375 in positive cash flow to cover the loan payment.

I feel as though the PMI payoff is the better more guaranteed investment route but the thought of a new property is making me droll.