Home insurance premium is prepaid at closing, and insurance and taxes might be escrowed something like 3 months worth.I recommend you check out a prospective property's Zillow for tax info and monthly payment estimates, Google for things like U-haul and appraisal averages, and ask around or call for quotes on garbage pickup and the like.BiggerPockets has quite a few articles on guestimating Cap Ex, vacancy, property management, and more.

How would I work the numbers if there is still a balance of the prepaid rent?

Here are a few things I usually adjust for when underwriting off an OM, whether it be from LoopNet or not Closing Costs I can't tell you how many times I see CoC calculated on an OM using just 25% of the purchase price without regard for closing costs, prepaid insurance, prepaid taxes, or anything that might be required to closeVacancy % I bring this to the market average or if it’s a small to mid-sized building, I’ll look up and see how many units are being marketed online for rent.Property Management I will bring this to what the company I will use chargesStuff like that usually changes the numbers a bit.

There are a lot of other things but I won't make this post a novel, I'll just say keep in mind that since you'll be holding this property as a rental, all the money you put into the property extends your Break-Even point on recouping all of your prepaid money (land purchase, Soft and Hard construction cost, Loan cost from the construction loan) you're hoping to get back from tenants paying down your mortgage, basically when will you really start to make money on this deal?

Depending on the lender and the state, these are out typical closing costs with our branch in Oregon.Processing Fee $475Underwriting Fees $465Loan Administration $380Appraisal $675Recording Fees $364Settlement Fee, Owners Title insurance, Lenders Title insurance, Title Endorsement (you can usually get a quick quote from a local title and escrow website.This does not include prepaid and reserves.

A down payment is just prepaid cash flow for your tenant and they are paying you back until all of your money is out of the deal then it becomes profitable.

@Miles Presha there will be a few ways to offset but depending on how far along she is in the process of selling her home the options may be limited.As others have suggest encourage her to reach out to her CPA or Financial Adviser.Also, there are some items that can help offset the gains, these include;- Selling costs include real estate broker's commissions, title insurance, legal fees, advertising costs, administrative costs, escrow fees, inspection fees, and points or prepaid interest on the mortgage.If you have any additional costs that coincide with these costs include them in your overall numbers and it will help your reduce your total.In order to get all of these items the seller will have to gather all of their documents and paperwork to verify.

Hi All,I know that when you receive a prepaid rent, you treat that as an income on the year that you receive it. 

Greater than 6 months you will not.The delayed financing exception will not allow the cash out to exceed your initial investment plus closing costs and prepaids.  

They should be able to open their own account even without a social security number.Most call takers are not aware of the option but by calling a few times to talk to a different operator there are different ways that most internet provider companies are dealing with it:They can request prepaid payment instead of post payed.They can ask for a security deposit.On the other hand if you have students that are here for short time, you can provide the internet as a utility service and include it in the rental price.In one of my property I do provide internet and charge my tenants for it.