Does it accrue interest?

Were that same tenant to leave your unit a wreck after a year of tenancy, you have accrued a year of rent payments rather than a month.The main con to having longer lease terms, in my opinion, is that if you have a problem tenant, you can't decline to renew the lease until the lease term is up.

Only current risk is sacrificing previous 90 days of interest accrued, but can be cashed in at any time.Time horizon is 7-10 yrs+

However, water in this city accrues to the landlord, not the tenant.

Rent was currently $1400 on a property an they have always paid late but always pay the late fees accrued.

Also, for ROI, if you are paying interest only, then there is very little equity you accrue in the home, and therefore this $ amount looks low (and then again looks high as a % compared to the total cash invested)I hope this makes sense.

Lessor may at any time thereafter, without notice, reenter said premises and lessee agrees that lessor, his agents or assigns, may commence for suit or possession and for any and all rent or damages accruing to lessor without prior notice or demand to lessee.Waiver of any covenant or agreement contained in thus lease at any one time shall not be agreement at any other time.

Of course the Legal Balance could include lots of other things like accrued/unpaid interest, late fees, attorneys' fees and expenses, taxes, insurance premiums, etc. but there is always the risk they will be written down or will be hard to collect. 

Tenant can't / won't / doesn't pay for a long time, accrues a debt they will never pay, gets evicted (eventually) with a large judgement, credit rating in the toilet, pays exorbitant interest rates, higher rent, larger deposit, can't borrow to buy a house ...

Will the preferred return be accrued and paid out prior to any split at sale?