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Updated almost 2 years ago on . Most recent reply

User Stats

49
Posts
15
Votes
Aubrey Ford
  • Investor
  • Atlanta
15
Votes |
49
Posts

Closing costs are way higher than the calculator suggested

Aubrey Ford
  • Investor
  • Atlanta
Posted

I’m new and learning.  I was able to find what I thought was a good deal. Two property package 60k/65k.  When I ran the calculator the numbers looked good. More than 8% COCROI and each cash flowing more than $100 a month.  Problem is the closing costs came back over $8k for each loan. I was using the suggested 2% for closing costs per the calculator.  I realize they are estimates but I never thought actual closing costs would be 13-15% of the purchase price.   It is making the deal unworkable  as I don’t have enough liquid to cover both properties. And the numbers are below 3% now and less than $50 cash flow each.  Now I am in crunch time to get creative or lose the deal..  thoughts? 

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