The government negotiated a deal for a "prepaid debit card" called a Direct Express card with Comerica Bank to provide benefits to "unbanked" recipients on social security, disability, us coast guard retirees, and some others entitled to federal benefits.

Total purchase price is for $475,000.00 seller to pay my closing cost and prepaids.

This poor girl, didn't understand the difference between prepaid insurance and insurance expense and I may as well have been speaking Greek to her. 

I got a rate of 4.5% on a 30-year fixed, with closing costs coming in around 2% (not including prepaids). 

However a tenant of mine that moved in in November hasn’t been late on his rent each of the first three months (except first month which was prepaid).

[All numbers are rounded up]Estimated prepaid items: $3,200Estimated closing cost: $5,300PMI, MIP, funding fee: $6,300Total cost: $415,000I'm putting about 10% down as of now which is about $41,000 (may put less depending how the numbers come out)Term: 30 yearsAPR: 5.5% (yes high I know)First mortgage (P&I): $1,910Hazard insurance: $100Real estate taxes: $343Mortgage insurance: $240Total payment (PITI): $2,600All other mostly payments estimated: $700Total all monthly payment: $3,300(I am not sure what they consider all other monthly payment to be and where they came up with $700 but that's what I'm going by)All these numbers are taken come the bank pre approval summary.I will be living in this house with my gf for atleast 2 years than eventually will rent all 3 units.I also dont know yet how much utilities cost so ill have to factor all that in after.From my quick math:$3,300 - $1,300 - $1,300 = $700After all expenses I'll be living in a 3 bedroom apartment for $700.

I always tell people to look at the deal this way, the cash you have in a deal at Closing on day one is basically prepaid rent that you loaned your tenants and they are paying you back in monthly increments until you hit the break-even point of zero out of pocket dollars in the deal.

At closing, I settled up with the former owner to the end of 2018, paid for a month of his tax bill (which he had prepaid back in January 2018). 

All mortgage payments are 4 months prepaid in advance for just in case something major comes up.

This will be amortized over the loan period.Escrow (T&I) [Debit] - Any escrow deposit required by lender at closingInterest Expense [Debit] - Prepaid interest paid at closingInsurance Expense [Debit] - Prepaid insurance paid at closingProperty Tax Expense [Debit/Credit] - Any property taxes paid at closingUtilities Expense [Debit/Cred] - Any utilities paid at closingRent Income [Debit/Credit] - any rent prorationSecurity Deposit [Debit/Credit] - any tenant security depositChecking (or whatever account you use) [Debit/Credit] - cash payout or received at closingThere could be more to it but those are the items I can think of on top of my head.