Going through Refinance on our 1st BRRRR - closing costs review?

[Jim Peckey]

Howdy folks,

Greetings. We're wrapping up our first multi-family BRRRR project and finalizing the cash-out refinance process now. We're expecting to close next Monday and just received the closing disclosure statement, I'm trying to figure out if the associated refi costs (~$10.4k) are exorbitantly high or if we're in line with normal costs.

We purchased the duplex in May 2019 for $65k, put about $70k into it and got it appraised for $164k. We're taking out a new 30yr VA loan @ 2.75% for $130k, leaving 20% equity in the property and taking out nearly all of the money we put into it - minus the costs of new tools, education, etc.

Here's a breakdown on the closing costs we're looking at:

In one way, I feel like we lucked out with not paying any origination fees or discount points, but in another way it feels like ~$10.4k is higher than normal of what I've read about closing costs being.  I'm not sure if it's completely accurate, but I've read that typical closing costs range anywhere from 2-6% of the total loan amount.  The $7,941.14 is on the top end of that estimate, with being just over 6%.  I'm unsure if I'm interpreting it correctly, but I'm also adding the extra $2,443.68 to the total amount of 'closing costs' as those are additional fees we've already paid for.

Any insight/feedback on the closing costs and our first BRRRR in general are certainly welcome and appreciated!

Cheers and have a great day.