In the process of buying a multi unit home. What are some unexpected costs I should put aside when closing? I know there is the appraisal fee which runs for about 700 but any others besides closings costs, reserves and appraisal? And about how much each?
@Dominique Long How many units and where at? And what type of loan?
Typical costs from contract to close would be
- Attorney Fees
- Lender Deposits
- Utility Deposits
- Contractor Bids in some cases
- You can generally calculate closing costs as a percentage of the sale price when you settle up on the deal...and this is all relative to where you are, lender requirements, etc...you may have pre-paids or mortgage insurance....property taxes, etc, etc.
- And thinking of CapEx up front is a good idea...though it's not an expense, it's an investment that is depreciated as useful life declines.
Much of the closing costs are negotiable, but plan for $3,000 minimum ( that's not including your down payment, earnest and option $ )