What Closing Costs Should I Expect on a Houston Rental Property?

Closing costs on a Houston investment property purchase can add up quickly. Here's what to budget for on a $250,000 property.

• Appraisal: $400–$700.
• Title insurance & search: $1,500–$3,000.
• Lender origination fee: 0.5%–1% of loan amount ($1,000–$2,000).
• Property tax escrow: 2–4 months prepaid — $1,000–$2,500 in Harris County.
• Insurance escrow: 12 months prepaid landlord insurance — $1,500–$2,500.
• Recording fees: $200–$500.
• Survey: $400–$600 (recommended in Houston).
• Total estimate: $5,000–$12,500 on a typical Houston SFH purchase.

Bottom Line

Budget 3%–4% of purchase price for Houston closing costs on top of your down payment. Negotiate seller concessions (seller pays a portion of closing costs) when market conditions allow.