Before you start making offers, go to your lender and get pre-qualified and see what the costs will be and what pre-paid items there will be for you to pay.

Expenses are not amortized and prepaid, you go 20 years without doing a roof or furnace and then you do 3.

It actually doesn't include your prepaid items such as daily interest, and tax and insurance impounds. keep that in mind if you are creating an escrow account to pay your taxes and insurance within your monthly payment.

A seller who finances needs to get a substantial down payment and ensure that the property is adequately insured by the buyer and that initial property taxes are pre paid and a tax payment plan is established."

Just to give you an idea... my investment property total loan purchase value of 221,325 came out to... 4,489 of closing, 2,008 or prepaids, and 1,234 in escrow.2-3%.

Here is my rental rehab (BRRRR) #1 (My strategy with these is buy, rehab, and refinance out and get back all money my spent while paying off the lender)Brick row home, 1156 sqft, 3 beds/ 1.5 bathPurchase price: $58,000.00Purchase Closing Costs(including lender fees): $7,035.00Estimated rehab costs: $25,000.00Estimated ARV: $145,000.00Actual Rehab costs: $26,384.52Actual Appraised Value: $140,000.00Cash Out Refinance Loan Value: $105,000.00 (75% LTV)Refinance Closing Costs: $8,739.00 (Loan Costs & other Costs (pre paid costs, escrow costs, taxes and other government fees)Total Cost out of Pocket: $100,158.52Total Cash back after all HML has been paid: $4,841.48Gained Equity: $35,000.00Rent: $1,475.00 a monthPre-Rehab Photos: Repairs Completed:Replaced furnace and condenserRemoved sections of walls between kitchen to dining room and dining room to living roomComplete kitchen rehab to include granite and all refurbished SS appliancesComplete 2nd floor bathroom rehabPainted entire houseRefinished 1st and second hardwood floors to a darker colorInstalled all new ceiling fans Replaced all doorsDecided to keep wood paneling and not finish 2nd half of basement.Replaced ceiling with recessed lighting and new carpet in 1st half of basement.2nd half of basement cleaned and repainted all surfaces.Replaced water heater, washer, and dryer.Rehab of basement half bath (I feel this was a mistake not upgrading to a full second bath)Fixed gutters and railings throughout the exteriorLandscaping with black mulch and a assortment of flowersPost Rehab Photos:I believe that is everything and all the pertinent information.

The "buyer" would agree to pay $200k or "full price" for the home, then the seller could "credit" them at closing to be applied towards pre-paids, escrows, closing costs, etc.

This question is for those that are able to earn commission (R.E. agents) and buy their own properties.In NC the commission is funded at closing it appears (unlike some states) and I am trying to use it to pay my clos...

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.

We are paying upfront points, 1 month prepaid interest, along with title & underwriting fees, etc.