Seller Concessions
Credits from the seller that reduce your out-of-pocket closing costs.
Example Result
Sample DataBased on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
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What This Means
A sample property priced at $385,000 with $2,850/month rent has a seller concessions of $0 at Purchase (Month 0). Seller concessions lower your out-of-pocket costs, improving your cash-on-cash return and reducing the barrier to entry. They are especially valuable in buyer's markets or when a property has been sitting on the market. However, they don't reduce the loan amount, so your monthly payment stays the same.
Where to Find This Value
Here's where you can find the value for Seller Concessions:
Purchase Contract
Seller concessions are negotiated in the purchase contract
Negotiation Terms
Agreed-upon seller credits toward closing costs or repairs
Inputs That Determine Seller Concessions
Calculations That Use Seller Concessions
Platform Distribution
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Unlock Rental Property CalculatorWhy It Matters
Seller concessions lower your out-of-pocket costs, improving your cash-on-cash return and reducing the barrier to entry. They are especially valuable in buyer's markets or when a property has been sitting on the market. However, they don't reduce the loan amount, so your monthly payment stays the same.
Detailed Explanation
Seller Concessions are credits the seller agrees to pay toward your closing costs, prepaid items, or other buyer expenses. They reduce the total cash you need at closing without changing the purchase price. Concessions are negotiated as part of the purchase agreement and are subject to lender limits (typically 2–6% of purchase price depending on loan type and down payment).
Example
Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
Related Calculations
Years Owned
UTime elapsed since the property was purchased, calculated from the purchase date to today.
Profit If Sold
UNet profit if sold today, based on actual years owned.
Return If Sold
UNet sale profit as a percentage of initial cash invested, based on actual years owned.
Total Cash to Close
UCash needed at the closing table to acquire the property.
Total Cash Invested
UTotal cash committed to the property: closing costs, rent-ready, reserves, and negative cash flow.
All-In Cost Per Unit
UTotal acquisition cost (including closing and rehab) per unit.
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