Investing question
Hey everyone,
I have a question in regards to where to invest next.
I currently have a triplex and am trying to decide on whether to focus on increasing its cash flow via removing my PMI or moving on to purchase another one.
Someone recently stated they don't invest in rental properties unless they are getting an IRR of 15%, and they seemed like a much more advanced RE investor then myself so I am going to assume that my IRR is 15% on this property I have at best.
I currently have PMI for about $150/month. If I can refinance to get rid of the PMI (bc I believe I have 20% equity now), and could refinance for say $5000 on my $230k property (not sure if this is an acceptable estimate on closing costs on a refinance for my property). Wouldn't that save me $150x12 = $1800/yr and therefore I could look at my return on that investment as 36% annual return ($1800year/$5000), and therefore this would be a wiser option then focusing on a second property until I remove my PMI?
Please let me know if this thought process is deeply flawed or has some logic behind it!
Thanks in advance!!!