Financing
Down Payment %
Share of the purchase price you pay in cash. Required investment-property down payment varies by occupancy, borrower, property, lender, and loan program.
Example
On a $400,000 property at 25% down, you bring $100,000 to closing (before closing costs).
Why Down Payment % matters
Down payment is the inverse of LTV and a major driver of leverage and liquidity. Compare written loan quotes and stress-test reserves instead of treating a percentage range as a universal sweet spot.
Related terms
LTV (Loan-to-Value)
Loan amount divided by the lender's eligible value basis. Investment-property cash-out limits vary b…
Cash-on-Cash Return
Annual cash flow ÷ total cash invested (down payment + closing + rehab). Tells you how hard your mon…
Closing Costs
Lender fees, title, escrow, insurance prepay, etc. Typically 2-4% of purchase price for investment p…
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