Prepaid taxes, document fees, etc...You also have sellers disclosure, inspection, appraisal, etc.The last house we bought I represented myself and the seller had an agent.

Some I believe use prepaid cards....no idea how to set them up. 

During closing account for prepaids - taxes, insurance, hoa.

My first spreadsheet is condensed information form my mortgage broker and lists on the Y axis (vertical): mortgage terms, rate, APR, fixed term, years, credit score, loan amount, sales price, percent down, down payment, FHA funding fee, Total Loan Amount, Estimated Monthly Payment, Principle & Interest, Homeowners Insurance (Flood + Home), Property Taxes (1.23% home price in my county), Mortgage Insurance, HOA Dues, origination fee, appraisal fee, tax service, flood certification, credit report, attorney's fee, title insurance-lenders, title insurance-owners, recording fee, verification of employment, survey, home inspection, water/septic if well, pest, 1st year homeowner's insurance premium, homeowner's insurance escrow, property tax escrow, per diem interest, down payment, closing costs, prepaid expensesOn the X axis (horizontal) I have the numbers for 200k, 250k, 300k, 350k, 400k broken down into whether it's single family or multifamily, then FHA or conventional2.)

@Patrick Fraire I'd counter at $330k + 1-year of rent for this friend with the contingency that the friend sign a lease agreement with you, which would basically be a pre-paid 1-year lease.

Cash to close includes things like lender's points and fees, prepaid insurance, prepaid interest, and closing costs. 

hi Melida. i currently own a 2 family in the bronx and also bought i using an FHA loan. i purchased a home that was being sold FSBO. he agreed to drop the price 15k off the bat since he was saving the agents comission. i just used an attorney provided by my employers pre paid legal benefit. no agents were used. i am biased but i think the Fordham/Jerome area is a great area to invest.

Very cheap properties however will have a higher percentage as fixed costs for low prices then become a higher percentage than they would be on an expensive property.Also keep in mind prepaids and escrow are not closing costs, its just you funding those items before they are to be paid.

If so then wouldn't the original owner get a refund check from the insurance company for any unused amount, and then you be required to post a years worth of insurance payments immediately similar to your prepaids at closing?  

Start a new asset account called "prepaid rent".