This will include but not limited to, processing, underwriting, closing, doc stamps for the county and state, prepaid interest and taxes, 12 months of hazard insurance(by Law), 1.75% of the loan amount which is known as up front mortgage insurance premium associated with (Fha financing) and title company fees. 

Typically there is a municipal lien certificate filed that states all taxes are paid to date and any that are prepaid are adjusted at closing.

To be eligible for this exception, the following conditions must be met: The original purchase was an arms-length transaction (buyer had no previous relationship with seller)The original purchase was an all-cash transactionThere are no existing liens on the propertyThe source of funds used for the purchase transaction are documented (from bank account, HELOC, etc.)The new loan amount can be no more than the actual documented amount of the borrower’s initial investment in purchasing the property, plus the financing of closing costs, prepaid fees, and points – even if the current appraised value shows more than the minimum amount of equity needed per LTV guidelines  Using Net Rental Income to QualifyDepending on your situation, growing your rental portfolio quickly could be a lot easier than you might think.

Plus, the points are taken up front meaning, if you get a $100K loan, they fund less points, junk fees, prepaid interest, etc. so you end up with about $94K cash.

What are your thoughts surrounding this if the rent payment is taken out of the equation because it was prepaid?

It certainly helps that all the rent is pre-paid in your case.I have the person moving out put it in writing that they are moving and that they understand that they will remain on the lease until it is up.

Your 23k also didn't count closing costs of roughly 3.5k or the first year of insurance 1k and prepaids to take advantage of Fannie loans.

PROPERTY TYPE:1-4 Unit Residential PropertiesNon Owner OccupiedLIEN POSITION:First mortgage only.STANDARD TERM:6 -12 monthsLOAN-TO-VALUE ADVANCE RATE:Up to 100% of the total project costs,subject to 65% of the After-Repaired-Value.DOWN PAYMENT:No Minimum – See AboveCLOSING TIME FRAME:5-7 DaysRENOVATION TERM RATE:15%PERMANENT LANDLORD RATE:5% – 9.99% Speak to rep for detailsHere is an example of a Loan that we recently completed- Contract Purchase Price On Subject Property – $71,000Renovation Budget (Cost Of Repairs) – $80,000Subject Property’s Appraised After Repairs Value – $260,000Maximum Loan Amount On Property (65% of Appraisal) – $169,000Actual Loan Amount – $165,350Calculation IllustratedPurchase Price – $71,000Renovation Costs – $80,000Closing Costs – $14,350The closing costs estimate in this example includes the costs of insurance, taxes, pre-paids and all other closing fees.

Solidify B C Contract with title transfer of prepaid PSAYou get the spread held in escrow Buyer walks Away with nice REO investment Bank is just happy they lessened their inventory  

I had an applicant called me a few days ago asking about a 1/1 unit I had for rent, I told her that it was just rented.She asked for how much, I said $1000 a month,but since I have already rented the place and signed ...