If the borrower were to challenge the foreclosure and draw out the process, these fees would continue to accrue.

The point is, you are accruing for CAPEX and without seed money in the fund, of course you will not enough to cover early year capital expenses.

-As to rent payment, in Florida, a tenant would either owe liquidated damages (as stated in the lease or would owe rent that accrues during the lease term until such time as the landlord is able to re-rent the property on their account.

If a defaulting taxpayer has more than one item to be sold, as soon as sufficient funds have been accrued to cover all of the defaulting taxpayer's delinquent taxes, no further items may be sold.

In your examples, you assumed holding the cashflows stagnant while the entire year of pmts accrues.

Or should I use some of my equity to get my credit card paid off before I start accruing interest? 

Real estate's cash flow is typically lower and more demanding, but in theory it should last forever and accrue in value.

The point of this story is to demonstrate how real estate lending is relationship based and its worth spending more time, effort and perhaps accrue interest expenses early on, even if you don't necessarily need the financing because formulating these relationships are extremely helpful as you grow.

The 7% pretax return is also zero-work and accrues month 1 and lowers your portfolio risk (by increasing your cashflow).

Yes, the cost for rewiring was completely unexpected, but i think that is something to accrue for in the future.