I was thinking of using these funds for the closing costs instead.

Unless you're in the business of evicting tenants without giving them a reason, then your business shouldn't be effected. 

@Daniel Tkach you need to be working with someone that does rehabs themselves to be able to tell you how much it's going to cost after walking it.

When you have a loan on an RE, you have it leveraged meaning you “own” it without having “paid” the full cost.  

This is not typical and is costly additional expense on the Texas Gulf Coast. 

You'll find plenty of support and insights here for leveraging your benefits effectively.

I am also getting 10k seller credit from seller, and could either use that one to buy down interest rate or just pay off the closing cost. the lender is giving me few option one with higher fund at closing and lower interest rate, and one with lower fund at closing with higher interest rate (about 0.2% difference) With the high interest rate right now, do you think it is better to do higher interest rate, and refinance later or should I just try to get as low as interest rate as possible and do not worry about refinance ? 

It seems like many of these things could be taken care of by RentRedi for a much lower cost. 

So....... with my previous CPA (who has since unexpectedly retired) we did a cost segregation study on an asset that was placed into service in 2021 which broke down the bonus depreciable items into 3 buckets, a 15 year bucket, a 7 year bucket, a 5 year bucket and the rest would be on a 39 year straight line depreciation schedule as it is a short term rental.

Do you want the seller to pay closing costs?