Updated almost 4 years ago on . Most recent reply
multi family % of closing cost as a rule of thumb
when buying a multi family property whether a 25 unit or a 60 unit. what percentage of the purchase price is typical to pay in closing cost?
what are typical closing cost other than what I listed below?
Title, inspection, appraisal, prorated taxes, prorated insurance, what else?
Most Popular Reply
@Elehue Pierce, I buy 100 to 400 unit deals and the closing costs range between 3 to 5% of the purchase price. However the closing costs are specific to each deal so the percentage is helpful but you should try to use actual costs when you can. Here are closing costs I factor into my deals:
- Title
- Inspection
- Appraisal
- Prorated taxes
- Prorated insurance
- Mortgage broker
- Loan application fee
- Real estate attorney
- Securities attorney
- Acquisition fee
- Survey
- Working capital
- Capex reserve
- Certificate of Occupancy
- Deposits for utilities
- Transfer tax - if applicable
- Zoning
- Loan assumption fee - if applicable