Cash to Close Calculator
The real cash it takes to buy a rental is a lot more than the down payment. Add up everything — down payment, closing costs, points, repairs, and reserves — so there are no surprises at the closing table.
Total cash to buy
Everything out of pocket: your down payment, closing costs, upfront repairs, and the cash reserves a lender wants you to hold.
Where it goes
Reserves are cash a lender wants you to keep after closing (often several months of payments) — they're not paid at closing, but you need to have them. Closing costs and reserve rules vary by lender and state; confirm your exact figures with your lender.
Why the down payment isn't the whole story
First-time investors budget for the down payment and get blindsided by everything else. On a $350,000 rental, a 20% down payment is $70,000 — but closing costs, points, upfront repairs, and the reserves your lender requires can add tens of thousands more. The cash to closeis what you hand over at signing; the cash to buy includes the reserves you must keep afterward.
Know that total before you shop, because it — not the monthly payment — is usually what caps how much property you can buy. Once you know a price works, run the full rental analysis to confirm the deal, and the mortgage calculator for the payment.
Frequently asked questions
How much cash do I need to buy a rental property?
Plan for the down payment (usually 20–25% of the price for an investment loan), closing costs (often 2–4%), any loan points, upfront repairs, and cash reserves a lender wants you to hold after closing (frequently several months of payments). Added together, this 'total cash to buy' is usually the real constraint — far more than the down payment alone.
What's the difference between the down payment and cash to close?
The down payment is just one piece. Cash to close is everything you pay at the closing table — down payment plus closing costs, loan points, and prepaid items. And beyond closing, lenders often require cash reserves you keep in the bank. This calculator adds all of it into the total cash you actually need available.
What are typical closing costs on an investment property?
Closing costs commonly run about 2–4% of the purchase price, covering lender fees, appraisal, title insurance, escrow, recording, and prepaid taxes and insurance. They vary by lender and state, so treat the default here as an estimate and get a Loan Estimate from your lender for exact figures.
What are cash reserves and why do lenders require them?
Reserves are cash you must have available after closing — often several months of the full mortgage payment (PITI) per property — as a cushion against vacancies and repairs. You don't pay them at closing, but the lender verifies you have them. Budget for reserves as part of your true cash needed, not an afterthought.
How can I reduce the cash needed to buy?
Options include a lower down payment where allowed (though investment loans rarely go below 20%), negotiating seller credits toward closing costs, shopping lenders on fees and points, and tackling repairs over time instead of all upfront. Just weigh a smaller down payment against its effect on your monthly payment and cash flow.