You pay 7% to sell (commissions, closing costs, repairs)...down to $335,000If you're using HML...I'm guessing you're paying 1-2% in points, lender's title policy, prepaid interest other fees, plus standard closing costs.

The max allowable seller concessions are 6% of the sales price on a second home with 10% down or 2% of the sales price of an investment occupancy or the actual amount of closing costs and pre-paids, whichever is less. 

If your closing costs aren't going to be that high, ask for as much as you can get and the remainder in price reduction or pre-paid taxes/HOA/appraisal/whatever other expense you can think of related to the deal.

Anything over 1 month is pre--paid interest days.  

Random things like doc prep, prepaid escrow, school taxes, inspections, flood certs, title company, attorney fees, etc etc. it adds up quick unless you can snag some seller help.

If you paid $20k for it, your closing costs (assuming cash) are probably somewhere in the $1-2k range, depending on what is necessary for where you are - title costs, inspection, prepaid taxes, recording fees.

I offered a 10% discount if they prepaid May, June or Julys rent. 

I am not sure if they have found a new place yet.They paid first, last and security, so rent for April is prepaid last year. 

I'm curious about the terms you came up with for the seller -- was the $8,700 you brought to closing all for fees and pre-paid items and the seller carried 100%, or was there a percent down you negotiated?  

I prepaid a year's worth of insurance which the company failed to account for and couldn't give me an explanation for months why I was being double charged for insurance purposes.