The amount of money you need to start investing in real estate depends entirely on the strategy, and the honest range runs from as little as a few hundred dollars to well over six figures. Anyone who gives you one number is describing one strategy, not the whole picture.
Capital Needed by Strategy
| Strategy | Typical starting capital | Notes |
|---|---|---|
| REITs / real estate crowdfunding | $100 - $5,000 | No leverage control, no property management, fully passive |
| House hacking a duplex or triplex (owner-occupied) | $15,000 - $40,000 | Low down payment loans (3.5%-5%) available; you live in one unit |
| Single-family rental (conventional loan) | $40,000 - $90,000 | 20-25% down plus closing costs and reserves on a $200K-$350K DFW property |
| BRRRR (buy, rehab, rent, refinance, repeat) | $50,000 - $120,000 | Higher upfront capital for the renovation, but designed to be recycled after refinance |
| New construction / custom investment build | $100,000 - $500,000+ | Land, permits, and a full build; highest capital but highest control over the finished product |
What the Down Payment Alone Costs in DFW
On a median DFW investment property in the $250,000-$350,000 range, a conventional non-owner-occupied loan typically requires 20-25% down, or $50,000-$87,500. Add closing costs (roughly 2-4%) and a cash reserve most lenders require (2-6 months of mortgage payments), and total cash needed lands between $65,000 and $110,000 for a straightforward single-family rental purchase.
Is There a Real Way to Start With Less?
Yes. House hacking is the most realistic low-capital entry: buying a small multi-family property with an owner-occupied loan (as little as 3.5% down on FHA, 5% on some conventional programs) and renting out the other units. On a $350,000 DFW duplex, that can mean starting with $15,000-$20,000 total cash instead of $80,000+. It also gets your foot in the door for a construction relationship - many investors renovate the second unit while living in the first, which is a natural next step into custom or investment-property building.
That top row of the table - a new construction or custom investment build - covers the widest cost range because the build path matters as much as the square footage. A production home generally lands at the low end per square foot, a full custom build sits well above it, and modular construction often falls somewhere in between once site work and finish-out are factored in.
Planning your first DFW investment purchase? Get a real construction estimate before you finalize your budget.
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