Anyone use a Pre-paid legal service or recommend one? 

Their own rule does not say it’s based on purchase price, it’s based on initial investment, and since I prepaid for the rehab work at closing and it says so on the settlement statement, my initial investment is the total (purchase + rehab).

They'll make you pay for appraisal, for prepaid insurance, prepaid interest. 

If that is the case, you can plan on a 1% Origination fee, an appraisal fee (anywhere from $500-800 in my market), a year of pre-paids (taxes and insurance), and whatever fees you title company will charge for a title insurance policy/doc prep ($500-1,000 in my area).

Many landlords fall for the pre-paid rent and think nothing can go wrong but it often does when landlords put blinders on and see only dollar signs.

Title search, survey (if required/requested), examining title, preparing title report/title commitment, obtaining tax certs, getting final water readings, gathering payoffs, HOA, condo dues, adjusting pre-paid and unpaid items, preparing settlement statement.

The only closing costs that I can think of that are currently deductible is accrued interest paid and prepaid property taxes...but this shouldn't be a reason to push up or push back closing.

But I think they like online payment because they can buy a pre paid visa and use that.   

@Joe Moore I am not a CPA nor a tax adviser but my understanding of the tax rules is that you'll be able to deduct on 2017 tax return your 2018 prepaid property taxes if you make your payment before Jan 1st.Now with everyone rushing to make those payment, i heard on a podcast (I can't remember which one it was) that the IRS indicated that the deduction for the 2018 prepaid property tax made on 2017 tax return is ONLY allowed if the tax has been assessed by the municipality.

The difference of the $3900 was not lost, and is going to be issued as "pre-paid items" at closing -- aka, the seller is going to cut checks to a general contractor or some construction company that I want to use to make repairs at the property.