Am I miss some additional costs?

However isn't the additional $16,920 I paid can be counted as expense when I purchase the property?

Additionally, because we bought in a popular owner-occupied area, we've seen the property's value appreciate over %9 in the past 3 years.Food for thought.

Based on this report, I have asked the seller for an additional $10K at closing to make up for some of the costs I'll be incurring from the start.

You can probably add it to your existing cell phone plan for $40/mo or so.

Hopefully you'll find that additionally helpful!

At the price point of our properties, it ends up being a little over the 6 months of mortgage payments per property that the commercial lenders in my area like to see prior to lending on additional properties. 

Imagine being an auction company and offering damages to buyers when a seller can't close because they didn't calculate properly or foresee additional lien payoffs.

Additional costs for snow and heat could add up as well. 

Basically, the chain of title is unbroken and free of defects and transfer of title can take place with little to no additional work involved above and beyond a normal closing.