Pay my home down and lose PMI or buy an investment property?

[Rachelle P.]

I am currently paying PMI on my primary residence.

I am a novice here, but am I better off paying down my house and losing the $300 a month PMI, or taking the money I have in the bank and buying a rental? I'd make $300 a month from the rental, and it is brand new with a 1 year warranty, so maintenance costs would be delayed for a bit.

Thanks for advice!

[Sarah Ziehr]

First question to answer is if you are able to purchase an investment property based on your current DTI. You will also need 20% down minimum.

Personally I would pay off that PMI unless you found an income property that was bringing in more than $300 per month.