The most common question new investors ask about a DSCR loan is simple: how much do I actually need to put down? The short answer is typically 20% to 25% of the purchase price for a single rental property — but the right number depends on a few things you can influence.
What moves the down payment
- The property’s DSCR. A property whose rent comfortably covers the payment can often qualify at the lower end of the range. A thinner ratio may require more down to make the loan work.
- Your credit profile. Stronger credit generally unlocks the most favorable down-payment and rate combinations.
- Property type. Condos, multi-unit, and short-term-rental properties can carry different requirements than a standard single-family rental.
Down payment and cashflow are linked
Putting more down isn’t just about qualifying — it directly lifts your monthly cashflow, because a smaller loan means a smaller payment. That’s why two investors can look at the same house and see very different deals: the one who puts 25% down has a higher DSCR and more cushion than the one who puts 20%.
Don’t forget closing costs
Your cash-to-close is the down payment plus closing costs (lender fees, title, taxes, insurance setup, and reserves). Budgeting a few percent of the price on top of the down payment keeps you from being surprised at the table.
Estimate it for a real property
Rather than guess, plug an actual price and rent into our cashflow calculator. It shows the estimated cash you’d need to start, the DSCR at that down payment, and the resulting monthly cashflow. Want to see homes already filtered to ones that pencil out? You can browse rentals that already cashflow.