It gives them something to start over with in case to rent a new place or settle some of the unsettled debt accrued ie: possible mortgage, hoa's, etc.. 

As such your real estate tax bill is accrued but not yet incurred.

I typically see a late fee of 5-10% after 10 days of non-payment and default interest begins to accrue at 10% after 30 days of non-payment.

The rent is $1000 in late fees accrued are $200.

You will never pay interest that you haven't accrued on a standard mortgage, so the interest portion is ONLY what has accrued that month. 

In effect, he bought a note at a market discount and this discount has the same tax treatment as Original Issue Discount (OID).The OID rules treat the discount as additional interest which may be either accrued until the note is redeemed or reported as current income in the year received.The details can be found in IRS Pub 550.

To create transparency , what would be nice would be for HW to put public stats on- avg rehab bill for a property originally placed by HW when there is a vacancy (by unit type/SFH and neighborhood class)- avg # of days between rent stopping and again getting accrued for investors - avg lease length and % renewing (by unit type/SFH and neighborhood class)I don't want to create a digression to the thread around their sales practices but the pro forma numbers usually reduce the expected costs so they should take the data from their rentals and use it in all of their # projections.Numbers don't lie.

As a matter of WA law, a previously absent property owner who returns to find their property rented out, can evict the tenant I’ve placed in their property and can demand all the rents accrued during my possession.

Interest will only accrue on the outstanding balance, whereas a cash out refi will be more expensive from both a closing cost and interest expense standpoint. 

.- a point (or 2) up front for the deal, in the deal- 10-12.5% for 6 mo, 1/2 point for more time, say 60 days additional, plus the interest accrued- stay below 65% ARV, with a complete, detailed estimate going in- stay 5% below area comparables when determining a realistic ARV that WILL SELL!