The majority of your closing costs are based on a percentage of your loan amount and in most cases, 52-55% of those are for pre-paids for insurance, taxes and interest. 

I do think that if the other agent is easy to work with and pulls a lot of the weight (as often buyer's agents do) a nice bottle of wine and a pre paid gas card would be a very nice gift!

And they are most certainly not prepaid interest in a hard money loan, nor are they amortized over the loan term.

I initially offered $253K with the seller agreeing to cover my prepaid and closing ($7k).

You can get prepaid legal for less than $20month.

Everything else appears to be there, whether they are accurate (such as prepaids) or not I have no clue, but at least he has something there so Im just taking the assumption he is being honest. 

If you do accept them perhaps collect additional security deposit or prepaid rent to help mitigate the risk (not sure what the laws are in CO regarding max sec deps).Who knows, they may be long term tenants as you know it is unlikely they will be buying a house anytime soon.

No need for any sort of pre-paid legal. 

These are the amounts COLLECTED & UNCOLLECTEDThe percentages of rent are as follows:Jerry-32% - 10 days for AugustNik-68% - 21 days for AugustTo Nik (CURRENT OWNER)-$505-1767 #8$520- 1566 #5$250- 1588 #8$1275 x .68 = $867 + ($176 pre paid rent from 1767 #12) = Total of $1,043 due to NikTo JOHN DOE THE PREVIOUS OWNER:$200- R Smith$200- W Jack$490- J Hab$90- Kyley D$305- Lyn H$415- Harm W$250- Ra P$500- Vicky $100- Rin Mo$2550 x .32 = $816 + ($120 for Vic Wi /July Rent) = $936Uncollected Rents for August-$65- Ro Smit$285- Wi Jac$10- Ai Pi$5- Vic Wi$300- Est Mo$665 x .32 = $213 due to John DoeDue to John Doe (previous owner) - $936 + $213 = $1,149Due to Nik (current owner) - $1,043Difference due to John Doe= $106-------------------------------------------------------HERE IS MY ANALYSIS ON THE PRO-RATIONS: *(my response I had sent over to the previous owner)Settlement : Nik is owed $227.00 --------------------- Nik's owed total = $1043.00 $505 + John Doe Collected $520 + John Doe Collected $250 + John Doe Collected --------- = $867 (68%) + $88 + $88 = PrePaid Rent Payment ($176) = $1043.00 John Doe is owed $2550 (see above for figures) x .32 = $816 Vic Wi $120 - is ours on the assumption we could have applied that to Septembers rent.

I've had some collect 3 months and another collect 6.So I believe 2 things would have happened at closing, prorate of sellers prepaid taxes (back to them) and the collection of the buyers future taxes for escrow.