How Much Money Do You Need to Buy an Investment Property in Dallas?

One of the biggest questions stopping people from investing in real estate is simple: "How much money do I actually need?" Many potential investors assume they need tens of thousands of dollars or perfect credit to buy their first investment property in Dallas-Fort Worth. The reality? Understanding your financing options makes investment property more accessible than you think.

This guide breaks down exactly how much money you need for fix-and-flip properties, buy-and-hold rentals, and BRRRR method investments in the Dallas-Fort Worth market using hard money loans or cash purchases. At RFP Homes, we work with dozens of hard money lenders that provide all types of financing solutions, and our Investor Advisors can help you navigate these options to find the best fit for your specific investment.

Down Payment Requirements for Dallas Investment Properties

The down payment is typically the largest upfront cost when buying investment property in Dallas. Most serious investors in the Dallas-Fort Worth market use either hard money loans or cash purchases to move quickly on investment opportunities.

Hard Money Loans for Dallas Investment Properties

Hard money loans are designed specifically for investment properties and focus on the property's value rather than your personal credit score. These short-term loans typically require 10-20% down payment.

For a $200,000 investment property in Dallas-Fort Worth, you'd need:

• 10% down = $20,000
• 15% down = $30,000
• 20% down = $40,000

Hard money lenders charge higher interest rates (9-14% annually) and points (1-2% of the loan amount), but they offer major advantages for Dallas investors:

• Fast approval and closing (often 7-14 days vs 30-45 days for conventional loans)
• Property-based approval (less focus on your personal credit and income)
• Flexibility for fixer-upper properties that don't qualify for traditional financing
• Short-term loans (typically 6-12 months) perfect for fix-and-flip and BRRRR strategies

For a $200,000 hard money loan, you'd pay approximately $2,000-4,000 in points at closing plus monthly interest of $1,500-2,300.

Cash Purchases for Dallas Investment Properties

Cash purchases represent the strongest position for buying investment property in Dallas. Cash buyers need 100% of the purchase price upfront but gain significant advantages:

• Fastest closings (as quick as 7-10 days in Dallas)
• No loan approval contingencies
• Lower closing costs (no lender fees or appraisal requirements)
• No monthly loan payments during renovation periods

For a $200,000 cash purchase in Dallas, you'd need the full $200,000 plus closing costs of approximately $3,000-4,500.

‍Closing Costs for Investment Property in Dallas

Beyond the down payment, you'll need money for closing costs when buying investment property in Dallas.

Hard Money Loan Closing Costs

For hard money loans on Dallas investment properties, expect closing costs of 1-3% of the purchase price. For a $200,000 investment property, typical costs include:

• Hard money lender points: $2,000-4,000
• Title insurance: $1,500-2,000
• Closing fees: $500-1,500

Cash Purchase Closing Costs

Cash buyers skip all lender-related fees, reducing closing costs to approximately 1-2% of purchase price:

• Title insurance: $1,500-2,000
• Closing fees: $500-1,500

Total closing costs for cash: $2,000-3,500 on a $200,000 purchase

Renovation and Repair Budgets

Budget for renovation costs on top of your down payment and closing costs when buying fixer-upper investment properties in Dallas.

Light cosmetic renovations typically cost $10,000-25,000 and include fresh paint, new flooring, updated fixtures, minor kitchen and bathroom improvements, and landscaping.

Medium renovations run $25,000-50,000 and involve complete kitchen remodel, full bathroom renovations, HVAC system replacement, roof repairs, and extensive updates throughout.

Heavy renovations cost $50,000-100,000+ and include structural repairs, foundation work, complete systems replacement, and high-end finishes. These deals work best for experienced investors with adequate capital.

We can help you accurately estimate renovation costs and connect you with trusted contractors who deliver quality work on budget. Our Investor Advisors helped thousands of investors avoid costly renovation mistakes and can provide realistic budget expectations based on current Dallas market conditions.

Holding Costs During Renovation

Budget for holding costs, the monthly expenses you'll pay while the property isn't generating income.

Monthly Holding Costs for Dallas Investment Properties

For properties financed with hard money:

• Hard money loan interest: $1,500-2,300 (on $200,000 at 9-14%)
• Property taxes: $350-550
• Insurance: $150-250
• Utilities: $200-300

Total monthly holding costs with hard money: $2,200-3,400

For a 3-month renovation: $6,600-10,200 in holding costs

Cash buyers avoid loan interest but still pay property taxes, insurance, and utilities, approximately $700-1,100 monthly or $2,100-3,300 for a 3-month renovation.

When to Use Hard Money vs Cash

Use Hard Money When:

• You're a first-time investor without $200,000+ in liquid capital
• Working on fix-and-flip projects with 3-6 month timelines
• Pursuing BRRRR investments with planned refinancing
• Competitive situations require closing under 2 weeks
• Properties need renovation before qualifying for traditional financing

Hard money lets you control more properties with less capital. Instead of buying one $200,000 property with cash, you could buy 3 properties with $30,000-40,000 down on each.

Use Cash When:

• You've built substantial capital from previous investments
• When you want to avoid interest costs 
• Buying buy-and-hold rentals for maximum monthly cash flow
• Off-market opportunities require quick closings

Many successful Dallas investors start with hard money, build capital through flips or BRRRR refinances, then transition to cash purchases.

How RFP Homes Can Help‍

If you're looking for investment property opportunities in Dallas-Fort Worth and want guidance on financing strategies that match your budget and goals, talk to one of our Investor Advisors who can give you all the resources you need to complete your investment project. Our team helps investors at every experience level find the right properties, connect with hard money lenders, and build investment strategies that create real wealth in the Dallas market. We provide the connections, expertise, and support you need to succeed, because we help thousands of investors like yourself navigate these exact challenges every day.

How to Start with Less Capital

Start with hard money financing. Hard money loans require significantly less upfront cash ($30,000+) compared to cash purchases ($200,000-250,000). This lets you get started sooner.

Focus on lighter renovation projects initially. Properties requiring $10,000-20,000 in cosmetic updates need less total capital. Build experience with smaller projects first.

Build relationships with hard money lenders. Pre-approved financing lets you move quickly on good deals. Many lenders offer better terms as you successfully complete projects.

Consider partnership structures. Partner with someone who has capital if you have real estate knowledge or renovation management skills. Split profits based on contributions.

Reinvest profits aggressively. After your first successful project, reinvest profits into the next deal. Each successful project builds your capital base.

Ready to Buy Your First Investment Property in Dallas?

Understanding how much money you need to buy investment property in Dallas removes the biggest barrier preventing most people from starting. Whether you need $60,000 for a hard money financed flip or $200,000+ for a cash purchase, you now have a clear roadmap.

The Dallas-Fort Worth market continues to offer strong opportunities for investors across all budget levels in 2025. Population growth, job creation, and rental demand create ideal conditions for building long-term wealth through real estate investing.