Now, if you have a score of 740 the reserve can requirement can be cut down to $18000 plus $15000 and any closing costs, prepaids you are paying.  

Seems like you would have to buy a lot of these and I dont know whether its practicalI do this on the side to accumulate massive amounts of airline miles.That said, it's no easy process, and there is about a 1.5% transactional cost, and then you need to find a lawyer/title company that will accept all these prepaid cash cards since the maximum balance amount is $500  LOL

Taxes/prepaid insurance: $500So my estimate would be around $3500-$6000At closing everybody's got their dirty hands in your pockets.

For any leases that expired prior to closing, the prepaid last month's rent would go to the seller.

Note that this amount includes the upfront mortgage insurance premium (big number), prepaid interest, insurance, a fee for buying into the local water cooperative, etc.  

My lender told me if I close in October rather than on 9/29, then I won't have a mortgage payment on the new home until Dec. 1....Downside, I'll have to pay many more days of prepaid interest at $25/day.

I has be rare that any tenant stayed less than a year.Other point;  NEVER take prepaid rents into the future - - to me this says the tenant him/herself is doubtful of there prospect for continued employment - - but that's just me.

You may run into a scenario where you have to pay $5K at closing for prepaid taxes/insurance and then get a $5K check several weeks/months later from your current administrator.  

Also, VA loans allow you to get up to 4% cash from seller, as long as it is applied to actual prepaid and closing costs (closing costs, appraisal, insurance premiums, etc), so if you had money allocated for this, this 4% back from seller at closing may fee up some cash for minor repairs to get past the VA inspection.

Appraisal came in lower than expected at 35k (70% LTV) and I pulled out about 22k after fees and pre-paids.