Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Private Lending & Conventional Mortgage Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 2 years ago,

User Stats

5
Posts
0
Votes
Michael Litle
0
Votes |
5
Posts

First deal overthinking all details - Points and Closing Costs

Michael Litle
Posted

I'm about to offer on my first deal, a duplex in a slightly expensive market but will cashflow fairly easily.  I found a lender through BP who seems very knowledgeable, experienced, and likely someone I could grow but before I lock everything in, I can't help but wonder if I'm wasting valuable liquidity early on by paying $12k in closing ($7500 for 2 points).  Should I be nitpicking closing costs?

The deal breakdown will be likely a $420k offer with 10% down @ ~6%.  With Closing costs, mortgage is just over $2500 and rent for both sides is $3200 - $3500.  Overall an excellent first deal I believe, but I'm already ready to find make my next offer so I don't want to chew up cash I might need on the next down payment.

Am I over analyzing while I'm trying to learn this process?

Loading replies...