There are obviously transaction associated costs with any real estate transaction, with the lender, title company, and appraiser. There's no additional cost for investing with us beyond what is standard for any standard home purchase. If you are using conventional financing, you are required to put down 20% of the purchase price. You will also have standard closing costs that are associated with the transaction and are needed out of pocket. We typically budget about $3,000 per transaction for closing costs, which can vary based on the property, the lender you are using, and the state in which the property resides. This breakdown would be about $1,000 for lender fees, about $1,500 for title fees, and $500 for appraisal. A common point of confusion is about pre-paid taxes and insurance due upfront at closing. As much as another $2,000 could need to be put down at closing, but these are NOT closing costs. These are simply prepaids that we account for on our pro forma on a monthly basis. If you’ve purchased a home previously, you may be aware of how this works. If you want the lender to make your annual tax and insurance payments for you (which is not required), they will collect an entire year of taxes and insurance upfront at closing to be paid by you into this escrow account. This way, the lender already has the money in the account when it comes time to pay the tax and insurance when it is due the following year. You will notice a portion on all of your monthly mortgage payments is collected for future tax and insurance payments for the following year. This is referred to as your PITI payment (principal, interest, tax, and insurance). When you sell the home, you would have paid a year in advance into an escrow and will receive a refund of said money in the escrow account. Thus, it’s important to know the exact break-down of your closing costs and prepaids. Ultimately, what this means is that – in addition to your 20% down – you could end up needing to put down a total of $4K to $5K, but not all of that is true closing costs and not all of that is required. Most people choose to have the lender escrow for their taxes and insurance, as it’s much more convenient to not have to worry about making their own tax and insurance payments every year.