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Updated about 8 years ago on . Most recent reply

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James Redden
  • Marion, IL
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Negotiating Closing Cost into deal

James Redden
  • Marion, IL
Posted

I've purchased 2 properties.  One as a rental and one as my own property to live in, that I hope to rent out in the soon future.  

When negotiating, I have always negotiated a partial closing cost into negotiating. I see it as less actual money out of my pocket to me makes my ROI increase. So my question, is this the right way to do it? I'm talking about closing costs on single family homes. So my closing costs are around $1,500-2k. However, that also means I'm over paying on the house about 1-2k, or just under $10 a month for 30 years, which means about 3500 all together at a 5% rate.

Looking at purchasing 2 50k houses.  To save on about 3k/1.5k on each unit in closing on top of the 10% down, I'm thinking about negotiating it in.  Am I wrong?

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