Down side is they typically don't accrue equity as quickly as multi-family, are harder to leverage, and getting a refi done of them can be a huge pain. 

The rate is high, the payment is very high for the mortgage (as if I bought a fully renovated 2000 SqFt house on 1+ acres in a posh neighborhood), and I have had to spend basically any cash I manage to accrue to grease the wheels (fees to engineers that no one wants to pay up front, dumpster costs, township fees, inspection feeds, etc. and just other small things that fall between the cracks.

The note should clarify that the interest accrues and principal and interest are payable at the earlier of the resale of the property or whatever the loan period is (usually 12 months).

The interest can accrue, they don’t care.

All you note investors out there, is any one aware of a state that allows attorneys fees or foreclosure costs to be not only added to the outstanding principal the borrower owes but also to accrue interest in their own right?

If they hold the properties as rentals and sell down the road, they only owe taxes on the gains and depreciation recapture accrued since your death - or they could 1031 exchange and continue the cycle.I believe it was the very wise @Dave Foster that recently said 'You can live tax-deferred but you gotta die to be tax-free' 

However, if there is a payment due, you likely want to file ASAP to avoid any additional penalties/interest from accruing. 

They are excellent options for accruing investment wealth.

Look for "LTA" here https://www.cityofwarren.org/d...Here's the exemption:MCL 123.165:"this act shall not apply if a lease has been legally executed, containing a provision that the lessor shall not be liable for payment of water or sewage system bills accruing subsequent to the filing of the affidavit provided by this section.

Does the interest just accrue until you die at which point they cash in on your policy payout to cover?