Also, the mortgage would be accruing interest and you would be responsible for the payment from the time you close on the mortgage.

You can't collect more than you owe on the property (+legal and accrued fees), but at least you know a sale has a good chance of making you whole, even if the property were fire sold. 

As we begin to accrue more capital, we plan on looking into also utilizing passive investments, such as buying 4 plexes and working our way up. 

So, for the last say 4 years, I have accrued about $6,000.00 (in 5% savings of my rental income).  

Interest accrues only if you have a balance.

When returning security deposits of $50 or more, the landlord must include simple interest of 3 percent per year, accrued at six-month intervals from the date the security deposit was paid for any interest accruing prior to January 1, 2015.

I don't have a crystal ball, but if I can at least avoid overpaying for something then I expect we'll accrue equity in the properties, perhaps a little (probably quite small) income, whilst at the same time having a chance at some non-insignificant appreciation.Thanks for the question!

It's just another 10% and so on and so on, but the interest continues to accrue.  

However: In some cases, such as in 2006, the home may have been bought at peak price and with accrued late fees, etc... it may not be a great deal by any means to assume if at all.  

"First all cash flows go to the investors until they recoup their initial investmentSecond a 7% preferred return accrues until the properties are stabilized (for the current deals, that is considered 80% occupancy).