Sunday, 4 September 2011

How Much Cash Do You Need to Buy a Rental Property?

Determining how much cash you need to close on a rental property  is largely a function of the  estimated purchase price. Suppose you’re  looking  to buy some modest residential housing for $100,000. For a 25 percent down  payment you need $25,000, and  adding in another 5 percent for closing costs brings you to $30,000. If you have  your  heart set  on buying a property that costs three times as much ($300,000 sticker price), you need to triple these amounts to a total of about $90,000 for the  best financing options.

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