Closing Costs

The fees paid when a property sale closes. Title insurance, attorney fees, recording fees, transfer taxes, lender origination fees, appraisal, and inspections. Expect 2-5% of the purchase price. On a $150,000 Memphis rental, that is $3,000-$7,500 in addition to your down payment. These costs reduce your actual return but are often forgotten in back-of-napkin analysis.