You wouldn't hit the preferred the first year but it would accrue until fully paid.Option (A) is unappealing due to poor return relative to the high risks involved in a construction/reposition. 10% interest is typical on rehabs and with something like a 70% LTV (i.e. 30% cushion). 

--When an action for compliance with the terms of a contract is stayed pursuant to this Act, a penalty shall not accrue for failure to comply with the terms of the contract during the period of the stay.

This would defer me paying the taxes until I pull the money out and while the tax amounts sit there they accrue interest which brings more profits vs just paying it upfront with no gain.

(Unfortunately, the rental activity is a passive income and portfolio is a non-passive) Also, if you itemize,  the expense accrued on the investment property is deductible over 2% of AGI (only on 2017 )and interest accrued on loan used to the investment is also deductible as an itemized deduction. 

Once it is in your name, any judgments or liens he accrues will not affect you or your property.

When part of the goal is just how many properties can I accrue the bigger picture gets missed.Being a millennial myself, I think the attitude look at me and how much I've done by "fill in the blank age and time" is a dangerous notion.

You would likely also need to report with the capital gain reported some element of interest accruing between the time of the sale and the time you receive the cash proceeds.

Since I'm confident that I will be here somewhat more long term than where I previously lived I would like to start to accrue rental properties.The question is that since I was moving here I did not immediately buy a place so I'm wondering if it wouldn't be the worst thing to go ahead and start to accrue some rental properties while I'm still renting an apartment myself.  

(and certainly not all the extra interest that accrued at the higher default interest rate. )Question : Do we, as investors, then get to claim a tax deduction or write-off for all the interest - including the default interest - that was not paid?

Since the lien was purchased, more taxes had accrued and another 40 to 50K in new taxes was due.