I understand that closing costs are made up of 2 main areas: one time fees and prepaid/escrow items. 

Contactless (online) payments is a big deal given the current state of things during C19, especially with the right platform that allows your tenants more options (ie. debit/credit card option, ACH payments, or even expedited payment processing, along with rent/payment due date reminders, and the ability to report positive payments to TransUnion in order to give your tenants' credit scores a boost; this acts as an added incentive for them in the long run as well).

At 6.75 % - $7330$4,329.00 Closing costs$25.89 prepaid costs$2,975.00 discounts which I assume is another word for pointsAt 7.125 - $6281$4,329.00 Closing costs$27.33 prepaid costs$1,925.00 discounts/pointsDo these look right?

The whole concept of prepaid rent and notice for termination get a little murkier.  

So on the 1st he's caught up rent's paid in full, never a late fee, and with his next payment on  the 15th he's already in advance for the next month by 1/2He'd have a prepaid balance on account of 50% towards next month's rent.No need to rewrite lease just tell him your accountant won't let you do it any other way.

Since I am using my VA loan, and since the seller is covering closing costs, as is common in the area, I end up without any cash out of pocket, and also receiving deposits and prepaid rents from the seller (since the seller self-managed and did not use a property manager.) 

The cheapest way is pre-paid legal.

Some examples are:- Loan Origination fee- Bank Charge- Appraisal- Flood Certification- Mortgage Recording fee with county, etc.These all get combined and put under Loan Acq.Then the entry would look something like this (C for Credit, D for Debit):Building DLand DLoan Acq Costs DCounty Tax DSchool Tax DCity Tax DWater & sewage CChecking (Certified Check Fee) CChecking (Cash at Settlement) CMortgages Payable CEasnest Deposits CSec Dep Held CRental Income C

If you buy at $100K house, your transaction costs are about $3000 (not counting pre-paids).

And how does this work for switching over automatic direct debit/ACH out of the tenants' bank accounts?