Anything over 1 month is pre--paid interest days.  

I am trying to use cozy now but most of the tenants are saying they don’t have a bank account and they don’t want to pay the fee for using a debit or credit card.

Cozy allows credit/debit card payments, however there's an extra fee.

Using debit to create wealth while continuing to add more debit is not something I ever heard DR say was a good thing.

@Fernando Martin-GullansWon't comment about tax laws, but I recommend opening a dedicated checking account and debit card for all real estate-related expenses and income, to make bookkeeping easier.

Random things like doc prep, prepaid escrow, school taxes, inspections, flood certs, title company, attorney fees, etc etc. it adds up quick unless you can snag some seller help.

If you paid $20k for it, your closing costs (assuming cash) are probably somewhere in the $1-2k range, depending on what is necessary for where you are - title costs, inspection, prepaid taxes, recording fees.

I offered a 10% discount if they prepaid May, June or Julys rent. 

I am not sure if they have found a new place yet.They paid first, last and security, so rent for April is prepaid last year. 

I'm curious about the terms you came up with for the seller -- was the $8,700 you brought to closing all for fees and pre-paid items and the seller carried 100%, or was there a percent down you negotiated?