1st House Hack Finance Questions

[Brendan Garwood]

Hello BP community. I am currently looking to get into my first Duplex investment property which I plan on using as a house hack. I am looking to run the numbers on an attractive property in a great area of town within walking distance to the bars and clubs downtown. I am considering doing a 3.5% down FHA loan. The lender that I am working with informed me that I would have to pay $11300 at closing in addition to the $7700 down payment. Is this common? It seems to be a lot higher then the $3500 Brandon Turner estimates his closing costs at and would have a negative affect on the cash on cash ROI. The lender stated that the $19000 down at closing would include the following items: "3.5% down payment, appraisal, credit report, underwriting fee, processing fee, closing fee charged by the title company, interest for the first month of closing, homeowners insurance, homeowners insurance escrowed taxes, reimbursed to the seller taxes in the escrow account, appraisal, credit report recording fee by the city and the county." Does putting that amount of money down on a property make sense to you guys or is it too much out of pocket for a 220000 duplex? Thank you again in advance.