A $750,000 rental loan finances a purchase of about $937,500 to $1,000,000 at 75–80% LTV. At that size, the rent has to carry a payment of roughly $6,000 or more a month.
In short: A $750,000 investment property loan is usually a DSCR loan that qualifies on the property's rent. At 80% LTV it finances a $937,500 purchase, and at 75% LTV a $1,000,000 purchase. At a sample 7.0% rate on a 30-year fixed, principal and interest is about $4,990 a month, so with taxes and insurance the property typically needs about $6,100 to $6,500 in monthly rent for a 1.0x ratio. Expect to bring roughly $190,000 to $250,000 or more for the down payment, plus closing costs and reserves.
This table starts from a $750,000 loan and shows the price it supports at each LTV, the down payment, and the monthly rent needed for about a 1.0x DSCR. The sample rate is 7.0% on a 30-year fixed. Taxes plus insurance are an illustrative 1.5% of the price per year; the real figure depends on the county and the policy.
Rent needed stays between about $6,150 and $6,450 on every row because principal and interest are tied to the loan amount. A bigger down payment buys a more expensive property, not a smaller rent requirement, unless you also borrow less.
| LTV | Purchase price | Down payment | P&I at sample 7.0% | Illustrative taxes + insurance | Rent needed for about 1.0x |
|---|---|---|---|---|---|
| 65% | $1,153,846 | $403,846 | $4,990 | $1,442 | $6,432 |
| 70% | $1,071,429 | $321,429 | $4,990 | $1,339 | $6,329 |
| 75% | $1,000,000 | $250,000 | $4,990 | $1,250 | $6,240 |
| 80% | $937,500 | $187,500 | $4,990 | $1,172 | $6,162 |
At a $937,500 to $1,150,000 price, the deal is usually one of four things. 2-4 unit buildings are the most common, because several rents add up faster than one. Higher-end single-family homes come next, though their rent often falls short of the payment at full leverage.
Short-term rentals in vacation markets can fit, since STR DSCR loans qualify on projected revenue and start from 6.49%. A few investors also use a $750,000 cash-out refinance on a property they already own outright or with a small balance.
Whatever the type, the appraiser's rent schedule is what counts. Ask a local property manager for a realistic rent opinion on each unit before you write the offer, and use the lower number if you get two.
| Property | How the rent gets to about $6,200+ | Watch for |
|---|---|---|
| Fourplex | Four units around $1,550 to $1,700 each | Unit legality, older roofs and systems |
| Triplex | Three units around $2,100 to $2,300 each | Insurance on older buildings |
| Duplex | Two units around $3,100+ each | Usually a high-rent metro |
| Single-family | One lease of $6,200+ | Rent rarely keeps pace with price |
| Short-term rental | Projected revenue from a market report | Seasonality and local STR rules |
This example is illustrative and not a quote. An investor buys a fourplex for $1,000,000. The appraisal supports the price and a rent schedule of $1,650 per unit, or $6,600 a month. Taxes and insurance are about $1,250 a month.
At 75% LTV the loan is $750,000. At a sample rate of 7.0% on a 30-year fixed, principal and interest is about $4,990. The full payment is about $6,240, so the DSCR is about 1.06x, above the 1.0x standard minimum.
Cash to close is the $250,000 down payment plus sample closing costs of $20,000, or $270,000. If the program in this example required six months of reserves, the investor would keep about $37,439 in the bank after closing, for total liquid funds of about $307,439.
At $750,000, small rate changes matter. In the example, a sample rate of 7.5% instead of 7.0% raises principal and interest to about $5,244, an increase of about $254 a month. The full payment rises to about $6,494 and the DSCR falls to about 1.02x. That still clears 1.0x, but the cushion is thinner.
Rates start from 6.125% for well-qualified borrowers, and rates change with the market. Credit score, leverage and the property all affect where your rate lands. Run your deal at a rate a little above what you expect, so a small move does not break the ratio.
If your deal only works at the lowest rate you have seen advertised, it is a thin deal. A property that still clears 1.0x at a rate 0.50% higher gives you room to close even if the market moves before you lock.
The table uses an illustrative 1.5% of price per year for taxes and insurance. Some areas run higher, especially where property taxes are high or insurance is expensive for older buildings or coastal locations. In the fourplex example, if taxes and insurance were $1,500 a month instead of $1,250, the full payment would be about $6,490 and the DSCR about 1.02x.
That is still above 1.0x, but the margin shrinks quickly. Get the actual tax bill and a written insurance quote before you finalize the offer, not after the appraisal. On a $750,000 loan, a few hundred dollars a month in escrow can decide whether the full loan amount works.
On a $750,000 loan, the down payment is $187,500 at 80% LTV or $250,000 at 75% LTV on the matching price. Add closing costs, which cover lender and third-party costs such as appraisal, title and recording, and prepaid insurance and tax escrows.
Then plan for reserves. Requirements vary by program and often rise with loan size and the number of rentals you own. Some programs also look at whether the money is seasoned in your account, so move funds into the accounts you will document well before you apply.
The appraisal does two jobs on a DSCR loan: it confirms the value and it sets the market rent. On 2-4 unit properties the appraiser uses a small residential income report, often Form 1025, with rent comparables for each unit type.
Some programs require a second appraisal or a desk review on larger balances. If your leases are above market, ask how the program treats them; some use the lower of the lease or the appraiser's market rent. Vacant units are usually counted at market rent, but a building that is mostly vacant may need a bridge loan first.
Give the appraiser access to every unit, current leases and a list of recent improvements. Missing access is one of the most common reasons a small multifamily appraisal comes in late or with a lower rent figure.
On a purchase, a $750,000 loan can reach 80% LTV. On a cash-out refinance the limit is 75%, so you need a property worth at least $1,000,000 to borrow $750,000. Cash-out qualifies on the new, larger payment, and the ratio after closing must still clear the program minimum.
Seasoning varies. Some programs allow cash-out with little or no seasoning; others want several months of ownership or cap the loan at the purchase price plus documented improvements. Business-purpose uses, such as the next down payment, rehab or reserves, are standard.
Some investors with about $250,000 to invest compare one $1,000,000 fourplex against two $500,000 rentals. Two properties at 75% LTV would mean two loans of $375,000 each, with principal and interest of about $2,495 each at the sample 7.0% rate, the same $4,990 combined as one $750,000 loan.
The payment is the same, so the choice comes down to the properties. Two locations spread vacancy and market risk. One building means one roof, one insurance policy and one closing. Each loan is underwritten on its own rent, so a weak property cannot borrow strength from a strong one. Run both versions through a DSCR calculator before you decide.
A $750,000 file moves quickly when it is complete on day one. The financing team will review the scenario and come back with 2–3 options.
About $937,500 at 80% LTV and $1,000,000 at 75% LTV. At 70% LTV, about $1,071,429.
At a sample 7.0% rate on a 30-year fixed, principal and interest is about $4,990 a month. Taxes, insurance and any dues are additional.
Enough for about a 1.0x ratio, which on the sample figures here is roughly $6,100 to $6,500 a month. Higher taxes, insurance or rate raise that number.
The down payment ($187,500 to $250,000 or more), closing costs, prepaid escrows and the program's reserve requirement. The example on this page totals about $307,000 with six months of reserves.
Yes, if the rent supports the payment. Many single-family homes at this price rent for less than the payment at full leverage, so a larger down payment is common.
620 is the minimum, so it is possible, but pricing improves at higher scores and lower-score files may see lower leverage. At this size, strong reserves and a solid ratio help.
DSCR loans qualify mainly on the property's rent, credit and reserves. Some programs look at ownership history on larger balances. First-time investors can ask about our first-time investor options.
Yes. 30-year fixed options are available. Other structures may be offered depending on the program.
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