Make sure you keep each unit's security deposit in a separate interest bearing account and that return of the sec deposit includes any accrued interest.

They were likely aware of the lien, but did not anticipate how large the late fees or legal fees had accrued. 

We certainly did not accrue the capital we needed, but it taught us an important lesson about VCs and Partners: If you are truly prepared to stand behind an awful idea, you should also be fully prepared to fund it yourself!

Factors include the wording of the original agreement, when the original debt was due, how it was billed, and if the tenant ignored the bills and let them accrue.

The transactional aspect is appealing, as well as the ability to accrue cashflow, which is my goal. 

I expect I'll accrue a bunch of tax losses which I can start taking (using the $25k rule) once I start renting the property for a full calendar year.Now for my actual tax questions:Will I regret doing the repairs before actually getting a renter, i.e. should I post it on Craigslist before I start paying for these repairs so it doesn't get classed as start-up expenses? 

The lien is accruing interest at a nice rate as well... plus attorneys fees are soon to follow. 

The bank doesn't keep all of the foreclosure money, just what they are owed plus fees, accrued interest, attorney fees, and any cost associated with foreclosing.At the very least, he should contact the lender and discuss options. 

I'm an investor in Massachusetts and I'm curious if there's a creative way to set up the landlord/tenant account that holds the tenant's security and last months rent deposits in such a way that the annual accrued interest can be paid to the tenant automatically...As of right now I'm required to manually send a check to each one of my tenants on their year anniversary.

To make a long story short I ended up getting stuck with all debt that we had accrued during the marriage.