Estimating Closing Costs with the Rental Calculator to Find Deals

[Nicole Fay]

Hello! I am a new real estate agent and new into investing with my husband. We currently have a property (SFH) under contract that we are currently rehabbing and plan to rent out. We are enjoying the process so far and so I am starting to look for other deals and analyze them as rentals using the BP Calculators and tools. So far, it seems that the rent estimator is conservative for our area (Palmyra PA - Lebanon County). I am loving the rental property calculator to see if listed properties could be a good deal. I used the rental calculator however for the deal we are currently in and this is where I started to get confused. We have the house under contract for $140k and we are getting a conventional 30 fixed year mortgage with $7,000 down being our primary residence (not an investor mortgage). According to the calculator it says that closing costs should be 1-2% of the purchase price - so on the high side $3,000. We have two mortgage lenders that have quoted us and the closing costs for each - not including the $7,000 down - are both around $10,000. I have attached an image of one of the quotes for closing costs. What am I missing? I don't want to be analyzing deals incorrectly and get in way over our heads. I greatly appreciate your help, insight, and experience!

-Nicole :)