Down payment is not the last dollar a rental may ask for. Vacancy, repairs, turns, and capital projects need room too.
BUY A RENTAL PROPERTY
See whether the rent can support the payment, expenses, and reserves.
Model long-term or short-term rent, operating costs, cash flow, DSCR financing, and the cash you may need before deciding whether the property works for you.
Run a rental snapshotSTART WHERE YOU ARE
Your first rental does not need to begin with investor jargon.
Start with the cash the purchase may require, the income it may produce, and the reserves that protect you when real life happens.
About 2 minutesEstimate cash inPressure-test monthly performance
1
Cash into the property
What may be committed before the first rent payment?
Explore where the cash could come fromSavings, primary-home equity, or a combination
Amount still to plan for$63,750Illustrative equity-line room$210,000
$750,000 × 80% − $390,000. This is a planning estimate, not a HELOC offer.
2
Monthly property performance
Use realistic rent and leave room for imperfect months.
KEEP THIS PLANTake your numbers with you.
Send it to Elizabeth Email, text, or copy this planning snapshot. Nothing is submitted or stored by this site.
DSCR FINANCING
Let the property do the qualifying.
That is what I call Landlord Lending. Instead of using your employment income to qualify, many DSCR programs look primarily at whether the property's eligible rent supports its housing expense.
Eligible monthly rent÷Mortgage + taxes + insurance + HOA= DSCR
My planning guideline: we want at least a .75 DSCR, and ideally 1.0 or higher. At 1.0, eligible rent matches the qualifying housing expense. The specific program, rent documentation, down payment, reserves, and property type still matter.
For a short-term rental, a lender may not simply accept a projected nightly rate. Depending on the program, qualifying income may come from an appraisal rent schedule, documented operating history, or other approved sources.
SEE THE PLAN BEFORE YOU START THE WORKBUY · REHAB · RENT · REFINANCE · REPEAT
Planning a value-add property?
A BRRR strategy adds another layer: renovation capital, after-repair value, refinance proceeds, and the amount of cash left in the property. That deserves its own tool.
NUMBERS MEET REAL LIFE
A strong plan leaves room for the property to be a property.
Appreciation and rent growth may help over time. The purchase should still be understandable using today's realistic assumptions.
A conventional rental, HELOC-funded purchase, renovation project, or BRRR plan may each need a different structure.
QUESTIONS WORTH ASKING
Before an investment property becomes part of the plan.
How much down payment might an investment property require?
Investment properties commonly require more down than a primary residence. The exact amount depends on the property, loan program, credit profile, reserves, number of financed properties, and other qualification factors.
What is Landlord Lending?
Landlord Lending is Elizabeth's plain-English name for DSCR financing. Many DSCR programs qualify the transaction primarily using the property's eligible rent compared with its housing expense, rather than using personal employment income.
What DSCR should I look for?
As a planning guideline, Elizabeth wants to see at least a .75 DSCR and ideally 1.0 or higher. A 1.0 DSCR means eligible monthly rent matches the qualifying mortgage, taxes, insurance, and HOA expense. Program requirements vary.
Can short-term rental income help me qualify?
Potentially, but a lender may not simply use a projected nightly rate. Depending on the program, qualifying income may come from an appraisal rent schedule, documented operating history, or another approved source. Local short-term rental rules also matter.
Can I use equity from my current home?
A HELOC, home equity loan, or cash-out refinance may provide purchase or renovation funds. The added payment, available equity, qualification, tax treatment, and effect on your reserves should be reviewed before relying on it.
What does cash-on-cash return tell me?
It compares estimated annual pre-tax cash flow with the cash invested in the property. It is one useful measure, but it does not capture appreciation, principal reduction, major future repairs, financing changes, or tax consequences.
When should I use the BRRR Calculator?
Use it when your plan includes buying below potential, completing meaningful renovation work, renting the property, and refinancing based on a projected after-repair value. It helps isolate how much cash may remain invested after the refinance.
BRING ME THE WHAT-IF
Bring the what-if. Leave with a plan you understand.
You do not need the perfect question or a polished plan. Tell me what you are considering, and we’ll connect the numbers to the payment, reserves, timing, and flexibility you want.
Want the quickest answer? Call or text me. I’m happy to help.
More of a calendar person?Schedule a Discovery Call