$70k and seller pays closing or $67 and I pay?

[Justin Johnson]

I'm looking to get my first rental property, and currently in negotiations. I'm trying to get into it with as little out of pocket cash as possible. Doesn't it make sense to pay $70k and ask seller to pay closing vs paying $67 for the house and I pay closing? List price is $79,900 and seller has countered my offer of $65k with $73k, but I believe they will go even lower.

[Andrew Marzec]

Personally I would always go for them paying closing costs. Assuming you are using conventional 30 year financing, 3k over 30 years is a few extra dollars per month on your mortgage. Better to save several thousand dollars out of pocket now by having seller pay closing costs if they are willing. Best of luck on the negotiations!