even if they don't have a bank account, they can get a prepaid bluebird card.

That's offset by actual closing costs (not prepaids/escrows).You'll also have depreciation unrecapture to consider. 

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 on the new mortgage loan If you are looking to pull out more cash that the initial investment (purchase price) then you will need to wait 6 months.  

Fund 529's for both your children assuming you are married put in 360k this year so you fund each kids with 180k and choose the conservative prepaid inflation protected account or if you are comfortable with capital market exposure go that route. 

I’m guessing, since you say it increased $5k and the prepaids are about $5k that’s what happened. 

Pre paid rent is just kicking a can down the road if there are problems and really doesn’t give much security.  

A lot of th costs could be prepaid or prorated taxes and insurance.  

By that date, we've received enough prepaid rent or have a leeway with the vendor that we can fund any Operating expenses from the Operating account. 

Your monthly rent invoice will include a 'Prepaid Electric Usage' with the amount of $47.4.

So you're looking at bringing 20% down and paying 5k at closing for  closing costs and prepaids.