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One of the most common questions we get from new investors is:
“Is $10K enough to get started in real estate?”
Closely followed by:
“What about $20K? Or $30K?”
The truth is, it depends-on the market you’re investing in, your strategy, and how you’re structuring the deal. But we’re breaking it all down so you can know exactly what’s possible with the cash you have on hand.
What Can You Do with $10,000?
Let’s be real-$10K is tight.
In most markets (like Columbus), it’s not enough for a fix-and-flip when you factor in:
- 10% down payment
- Closing costs
- Interest-only loan payments
- Reserves for unexpected repairs
If you’re just getting started and only have $10K, consider:
- House hacking with an FHA loan – You’ll need to live in the property, but it’s a great way to get in with 3.5% down.
- Partnering with a family member or private lender – Just make sure the terms (and the relationship) are solid.
How About $20,000?
$20K gives you more flexibility, especially in lower-cost markets like Dayton, Ohio.
Example:
- Purchase price: $60K
- Down payment: $6K
- Closing costs: ~$8K
- Remaining for reserves: ~$6K
It’s doable-but tight. You’ll need a cooperative contractor willing to get started with limited upfront payment and solid contingency planning in case unexpected costs pop up (and they will).
What Can You Do with $30,000?
Now we’re talking.
With $30K, most investors have enough to confidently take on their first flip or BRRRR project-without losing sleep every night.
You can:
- Make a competitive down payment
- Cover closing costs
- Start your rehab
- Have enough reserves for interest payments and surprises
Alternatively, $30K can fund a turnkey long-term rental, especially in markets where you can buy for $120K–$130K. These often cash flow $300+/month and are a great way to start building wealth with less risk.
Before You Spend a Dime…
No matter your budget, make sure you:
- Know your numbers: Purchase price, rehab cost, ARV, rent potential, holding costs
- Build your team: Realtor, contractor, insurance agent, property manager, CPA
- Know your exit: Flip, BRRRR, rent-and-hold—it all impacts how you structure the deal
- Talk with someone experienced (hey, that’s us!)
Final Thoughts
There’s no magic number that guarantees success. Some investors make it work with $20K. Others feel more confident with $50K+ on hand. What matters most is how well you know your numbers, your market, and your strategy.
At LFG Lending, we work with you based on where you’re at. Whether you’re ready to roll or still building your reserves, we’ll help you map out the best next step.
Want to see what you could do with the cash you’ve got?
Schedule a free intro call with our lending team — and let’s find out.