How Much Money Do You Really Need to Start Investing in Real Estate?

Hey friends—Jonna here. I get this question all the time: “How much money do I really need to start investing in real estate?”

You’ve probably seen the “no-money-down” success stories online. And while creative deals do exist—like house hacking or partnering with others—most investors I know started with some savings and a solid plan. Real estate isn’t magic; it’s math, patience, and preparation.

Typical Down Payment for a Rental Property

If you’re using a conventional loan, expect to put down 15–25%. On a $400,000 property, that’s around $80,000–$100,000. Add in closing costs (2–4%) and at least 3–6 months of reserves to cover your mortgage, taxes, and insurance.

Those reserves are your safety net. I’ve had a water heater go out at the worst time—but because we’d planned ahead, it wasn’t a financial crisis.

Why You Need Two Emergency Funds

I always tell new investors: have one emergency fund for you and another for your property.
That way, if your tenant misses rent or your job changes unexpectedly, you’re not scrambling.

For a $400,000 property, having $100K–$120K total gives you a confident starting point. That might sound big, but it’s empowering—now you know exactly what to aim for.

Creative Ways to Start with Less

If you’re house hacking, consider FHA loans (3.5% down) or VA loans (0% down) if you’re eligible. You can live in one unit, rent the others, and start building equity faster. Just know those loans convert to standard investment loans once you move out.

The Bottom Line

You don’t need to be rich to invest in real estate—but you do need to be ready. Build your reserves, know your numbers, and move from a place of strength, not stress.

That’s how you build wealth for life.

Go and grow,

Jonna

🎧 Listen to the full episode of Real Estate Investing for Life → https://jonnaweber.com/podcast