I'm interested in accruing a small number of buy and hold rental properties for retirement income.

I just accrued them all and when the payoff demand came in..

On his $100,000 investment he made a Total Return, including Equity Accrued, of $761,181.  

The only fees I accrue are the banks inspection fee every time I make an offer on a different reo.

Real Estate Taxes, Assessments, and AdjustmentsReal Estate Taxes accrued against the property shall be prorated through the date of closing the sale and Seller shall pay all taxes allocated to the property through that date of acceptance of this offer to purchase.

@Patrick Britton I'm currently a Software Engineer at T-Mobile but plan on leaving the industry in a few years to focus on whatever real estate investments I would have accrued by that time. 

For instance, in my market there are areas you can buy land or a tear down for $400k-$600k, then accrue $1.1M in construction costs, plus soft costs puts you at $1.32M, you would need to sell out at $1.9M in order to make a 30% margin.   

If the guy isn't paying on the second, he's probably not paying on the first, and there would be accrued interest, penalties, and foreclosure costs due to them as well.I recently purchased a house at auction that had a $600K first, and the outstanding principal balance was over $1MM! 

You would need to pay the liens prior to selling it and usually there is interest that accrues while they are not paid off. 

Right now we only accrue enough cash for a down on one purchase every 12 months.