closing/carrying costs

General Real Estate Investing
1

Hi,

I am working on a spreadsheet for calculating several different things concerning rehab projects.

Dump question here, but how much taxes, insurance and interest is included in closing costs? (It’s been so long since we bought our house, I can’t remember how that works.)

I am trying to figure how how to calculate carrying costs based on how many months the project will take, but not sure if the taxes/insurance/interest should be included in the carrying costs since they are in the closing costs. Or will I pay some at closing, and also have some carrying also?

This is probably easier than I am making it out to be.

2

If you are escrowing your taxes and insurance (T/I) then when you close the loan the # of months necessary to ensure that the escrow account is correct will be collected.

You may have to pay for a year of insurance when you get it, which will be before closing. Check with the Lender.

The interest calculated will be dependent upon what time of the month you close.