Closing costs higher than expected

[Michael Davido]

After watching several BP Youtube videos and BP Webinars, I have, to date, analyzed (using the BP calculator) about 25 properties.  I try to do 1 or 2 per day since I'm still trying to wrap my head around RE investing and my competitive/expensive market.  I follow along the way they show to use the calculator - one of which is using about 1.5 - 2% of the purchase price for closing costs.  

Trying to make a little progress each day, I called my credit union today to reach out to them about getting pre-approved for a mortgage related to an investment property.  

My credit union said they required a 25% down payment and charge 2.5 points.  

I found a duplex in my area that I might be able to make an offer. The listed price is $315,000 with a possible total rent per month of $3,000. Normally, I would put in $315,000 with closing costs of around $6,300 (that is 2%) with a 20% down payment. However, now the person was telling me a ballpark figure of closing costs would be around $16,500! That includes the Title Fee, Points, Appraisal Fee, and the Origination Fee. I was not expecting such a drastic increase in costs. This surely affects my CoC ROI and the amount of money I would need upfront.

I didn't process the preapproval request yet as I was wondering if that was all fairly standard?  The lady was guessing a 30 year mortgage would probably be around the 3.25 - 3.5% range.

Playing around with the numbers, it's calculating the total cash needed at nearly $80,000.

I was pretty blown away by all of that.  I guess it's part of the learning experience and not knowing what I don't know.

Is that pretty standard then?  If I made an offer in the $280,000 range, I don't know where I'd come up with $80,000.