Initial Investment

Initial investment is the total cash you contribute to acquire a property and make it ready to perform.

initial_investment = down_payment + closing_costs + upfront_repairs + startup_reserves

The down payment is usually the biggest piece, but rarely the whole story: closing costs, the repairs needed to make the unit rentable, and any starting reserves, leasing costs, or utility setup all belong in the number. (You may also hear "proposed cost" for the purchase-plus-rehab-plus-transaction total; same idea, seen from the property's side.)

Why precision matters

Initial investment is the denominator of cash-on-cash return and the baseline of net gain. Understate it and every return metric flatters the deal. Measured honestly, the deal's financial story gets clear: how much cash it takes to start, what the property returns, and whether the opportunity is worth the capital.

Where you'll see it in Rescover

Every analysis itemizes the cash to close (down payment, title charges, rehab, loan fees) and uses that true total, not just the down payment, when computing your returns.