That way you could actually charge an interest rate, use the additional funds to pay it off and have the money accrue tax free?

I have read all the Colorado statues and annotations, and can't find anything suggesting I can't keep endorsing/let interest accrue past the 3 years time.So my question is, if your tax lien is a small percentage of property value, why would you bother to start the redemption process and most likely get your capital back? 

Maybe let the rent accrue up to two months behind, then they surely won't catch up within that 5 day period. 

Just not sure the market you will be in to accrue equity that fast as LTV for cash out refi is 75%So for example you  find a house for $100k that needs $50k repairs, total purchase price is acquisition plus renovation total $150k.

@Joseph PuglieseIf your business is accrual basis and previously accrued the revenue and included it in taxable income, yes you could write off the bad debts.If cash basis, you don't get to write off revenue you never received as you never were taxed on it in the first place.There are extremely limited exceptions to this, particularly if you're cash basis and recognized the revenue under constructive receipt, however I suspect your fact pattern is not that complicated.You can deduct your normal operating expenses of the rental.Your CPA is best equipped to help you deal with this.

The below is pure speculation; I don't work in "loss mitigation" or have any insider scoop on it.With interest rates as low as they have been since 2012 or so, and given where appreciation has been, and the fact that when/if a home sells the title company will require that the lender (plus back interest) be paid off, it's possible that the 'rational' thing to do is let the interest accrue on the assumption/hope that there will still be equity in it at that point when someone dies/divorces/etc and sells. 

if you have 6 month seasoning you can either accrue the interest or pay monthly payments.. its all up to what you folks agree to between the parties..

I just am bringing this up because I don't want to you to get a big unexpected bill and leave you under accrued.

You are obligated to pay rent during the 30-day period for any amount that might accrue during that period.

A good lender strives to meet the contractually obligates date agreed to between the buyer and seller$500 would not be enough to get my attention as I have holding costs etc that are still accruing. $2500 non refundable might get my attention While you are a buyer today, this also means you are going to be a seller as well one day.