New appraisal to get rid of PMI
Hey BiggerPockets! I am looking for advice on getting rid of PMI early.
I have a property that I purchased with a 3% down conventional loan. It was owner occupied for a little over a year. I have moved out of the property and am renting it out. The value of the home has increased to a point where I could get it reappraised to get rid of PMI ($135 a month). Does having a tenant already in the property affect the new appraisal or my current mortgage in any way? I have not documented anywhere that it is a rental property now, although I'll probably have to do that soon with the tax office... I'm thinking a higher appraised value would increase taxes as well..? Rental property tax rate and an increased property value would pretty much kill my cash flow.
Any thoughts on this? Go through with a new appraisal or just leave everything as is? thanks!!