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.

Christopher Woodland  It is prepaid interest. 

Home Inspection, Pre-paid interest, Pre-paid or escrowed taxes and insurance, closing attorney fees, title insurance.For a fourplex I think the closing cost would be very similar to a SFHHere is a sample HUD for an example of some of the cost.If you budget ~$8,000 in closing cost I feel that would be safe.

If rates drop before that time period you can keep that unused money as it was essentially pre paid interest payments sitting in an escrow account waiting to be dispersed.

Expect to pay about $5k or so in lender fees plus your title fees, prepaids and escrows.