Are these closing costs normal?

[Kyle Koppenheffer]

Hey BP!

New investor here and I'm currently looking to buy my first rental property in the Philadelphia area. I've been shopping around for properties and I've been working with a broker to determine my financial options. I'll most likely be house hacking a multi-family and using an FHA loan.

I've had this broker estimate my closing costs on two different properties, with both having a purchase price of $200k.  I'm being told that closing costs will be close to $20k on each property.

Out of all the videos, books, articles, forums, and literature I've combed through over the past couple of months, everything is telling me that closing costs should be 3-5% of the purchase price, not 10%.

Am I missing something here?  Are these prices normal for a first time investor?  Is this due to working with a broker instead of a lender?  I'm currently in the process of finding another lender/broker, because this $20k figure doesn't seem right to me.

[Steve Vaughan]

Doesn't Philly have a 4% transfer tax, buyer-paid?  That can't help...