He paid me $50 more than he had to since he paid 3 full days late and accrued fees by the day.

From our conversation this is more in reference to bills accrued by renters and if the prior owner of a foreclosure property has a bill than the new owner is responsible regardless of the number.

Once I start to execute and the results start accruing maybe they'll take a different position on my recognized LTV. 

- Does interest accrue on money held in the repair escrow?

Then pay remained of balance with accrued interest.

Interested to hear feedback from the community:16 units (Two 8-Plexes)Purchase Price: $450,000Closing Costs: $30,000 (this seems high, but I'm assuming includes sponor's fee)Total Price: $480,000ASSUMPTIONSAnnual Rent Increase Assumptions: 2%Annual Operating Expense Increase: 2%INCOMERental Income: $9,500/moVacancy Loss: $903 (9.5%)-----------------------------------Gross Income: $8,596/mo ($103,170/yr)EXPENSESProperty Taxes: $452/mo ($5,434/yr)Insurance: $375/mo ($4,500/yr)Utilities: $1,200/mo ($14,400/yr - hoping there may be a way around this, but I think included utilities are standard in this market)Maintenance & Cap-Ex (15%): $1,425/mo ($17,100/yr)Property Management (8%): $687/mo ($8,254/yr) --------------------------------------------------------------Total Expenses: $4,140/mo (49,687/yr)Expenses as % of Gross Income: 53.09% (numbers seem reasonable, but % seems a tad low; I've heard multi-family is usually around 60%)Net Operating Income (NOI): $4,456/mo ($53,483/yr)CASHFLOWNOI: $4,456/moMortgage (25% down, 5/20 ARM, 5% interest): $2,227/moTotal Cash Flow: $2,229/moEQUITY ACCRUED: $10,082/Year 1TOTAL RETURN: $36,837/Year 1TOTAL ROI: 20.68%CASH-ON-CASH RETURN: 15.02%The return figures include the sponsor's/syndicator's equity stake and PM fees. 

I was able to settle one for the amount originally owed (got rid of $3k of accrued interest) and am still working on the other one.  

But in this case, both people are accruing wealth at the same rate (assume same tax liability).Buy-hold is different.  

Originate a loan which accrues interest and then that interest is converted into equity upon sale at some conversion rate which is considered your payback.  

I have accrued a decent amount of wealth from my company, and I just can't stand to look at that money anymore, and not do anything with it.