I want to live in my investment property for a few years so I can gather experience and also pay off my student loan debt that I have accrued.

Assuming there the net is positive (difference between the selling price and the investment (original tax lien investment and additional investments such as closing fees/costs, attorney fees, accrued taxes and fines etc) --how is it going to be taxed - as short-term capital gain (my income tax rate)?

Michael SmithHere the banks will do all the work for you, and within the escrow account there are seperate sub-accounts for each tenant linked to their SSN, and the interest, however minisule accrues to the tenant.

Since all of our private lenders allow us to have accruing loans, we don't make payments.

Most people in foreclosure owe more than they think with accrued interest, taxes, force placed insurance, etc.

This example has accrued 700K student debt.

For example, in Maryland, we must put it in an "interest accruing account" and pay the tenant back 3% simple interest per year.

Accruing interest, property taxes and insurance paid by the lender and costs won't be waived.  

I know in some states you have to track interest and pay tenants interest that accrued while you held their security deposit so having separate accounts are almost a necessity I think for things like that.3.

For instance, it is desirable to have charges accrue monthly opposed to yearly.