There are ways to subsidize it, such as getting a seller credit, or taking a slightly higher interest rate in exchange for a lender credit to pay that and/or other costs and prepaids. 

After accounting for APR costs, non-apr costs, points, UFMIP, and prepaids our total cash to close is $19,828!

prepaid next month's rent - $500 creditUnit D - rent $500.

@Ellen Xu @David Paul WestenbergerCosts to acquire a loan used to purchase an investment property are capitalized and amortized over the life of the loan.Any prepaid expenses paid at settlement (prepaid insurance, prorated property taxes, etc.) are deductible as operating expenses.

Buyer only pays a few thousand for prepaids (appraisal, etc). 

BTW, your closing costs including prepaid/escrowed taxes and insurance  will be more than the 3.5% down payment.

So, it can be a large amount if the then current treasury is lower than your interest rate, not today's treasury rate.One way to confirm this, is to ask the lender to calculate what your yield maintenance would look like if you took out the loan, and then immediately prepaid it.

These generally include the following: attorney, title insurance, title search fees, escrows (eg home insurance, taxes), pre-paids(eg home insurance, taxes, first mortgage payment), recording fees, survey.

For more context:-The loan details and closing costs(which include prepaids) come from my lendor as of yesterday.- Taxes are high here and paid for the year up front- The first tab is to show if it makes sense once I move out.The 2nd tab labelled "rent" gives a glimpse of while I'm living there.

In addition to the above, I'm a legal tenant w a 2yr pre-paid lease.