Excellent. Definitely do the valuation for IP 1 once you do the reno. Shop around for the valuation (NOT the loan) to see if another lender is prepared to value higher and give you access to more equity which means less LMI.
Also don't forget that LMI is tax deductible on IP's for the first 5 years or the life of the loan (whichever is sooner).
BTW - good work saving $1,500 per week!
Regards
Shahin