Do you pay closing costs?

[Tom R.]

Im making an offer on my second sfr today. There is some competition, they have already received at least one offer so I have decided I can sweeten the deal alittle if I offer a little over asking and have the owner pay my closing costs.  This will decrease my cashflow but increase my cash on cash return. Have you ever done this? Does it work?

[Marc Middleton]

Yep, its a great idea. Plus the seller's agent has to tell other buyers "We have multiple offers" and if they say, "oh really, full price?" they get to say "over asking price" which scares people away :) 

If you are paying cash then you don't have to worry about it no appraising either.