What first-time rental property investors need to prepare — down payment, reserves, credit requirements, DSCR expectations, and realistic financing scenarios for your first investment property.
First-time investors can use DSCR loans — there is no prior landlord experience requirement. You'll typically need a 20-25% down payment, 6-12 months of reserves, a minimum 620-680 FICO score, and a property where the rent supports the payment at a 1.00-1.25 DSCR. The biggest surprise for first-timers is usually the reserve requirement — having cash left after closing.
On a $300,000 property, expect $60,000-$75,000 down. Gift funds may be accepted by some programs.
After closing, you need 6-12 months of PITIA in reserves. On a $2,500 payment, that's $15,000-$30,000 in accessible funds.
Higher scores unlock better programs. Below 680 limits your options but doesn't eliminate them entirely.
Run rent vs. PITIA before making an offer. A 1.15+ DSCR gives you program flexibility.
Total cash needed: ~$62,500 down + $3,750 closing costs + $15,000 reserves ≈ $81,250 liquid.
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Disclaimer: Educational only.
Last Updated: July 17, 2026 | Reviewed by: Matt Dean, Sr. Loan Officer, NMLS #227603 · NEXA Lending