So it shows as a credit for security deposits, pre-paid rent and pro-rated rent. 

However, I'd expected to pay that amount, though not upfront, so I decided to suck it up and move ahead.But what was worse, at the closing I learned that in addition to the year I'd prepaid, Wells Fargo would ALSO require me to prepay for the following year, through escrow. 

So only a little bit of income in 2018, a little prepaid interest and insurance, and only a few days for depreciation.

I'm viewing the rehab as prepaid maintenance as the electrician and plumber got everything up and running and the appliances are all new and under warranty. 

Purchasing a new construction rental in Jacksonville, FL.163,000 purchase price 25% down closing cost with prepaids are 7835.00 30 yr fixed 4.47% with 775 Fico score.Closing costs seem about double to me.

Can someone help understand Prepaid & Contribution cost?

What this boils down to is you are offering to prepay him (by waiving deposit and first month's rent), he gets a place to live while he works with no deadline and pressure, and you are stuck with the work because you prepaid with no leverage.

@Ellen Morrison - To me, I wouldn’t count property taxes, insurance, and prepaid interest as closing costs.

As such, I'm planning to turn it into a flip.Prior to closing, I am in $4,075 to the deal:Assignment Deposit: $2,500Appraisal (required by HML): $475Insurance (pre-paid annually): $1,100 (I had the option to add this to the closing statement, but it would have delayed closing)If we go by the numbers on the closing statement, my all-in costs will be $105k involving $17.5k of my own cash.Questions / CommentsSo as I head into closing day, I have several questions / concerns / comments, listed below:1. 

I did it with someone who I had experience with and on this 3rd job that I prepaid him for, he did not finish it.