So if you borrow $10,000 at 5% from  your policy, that $10,000 is now accruing $500 annually in interest and is also not in the account earning the dividend rate of 5% so your effective cost is actually 10%. 

In accounting the money given is applied toward the previous months balance.. so if they had a previous balance due of accrued late fees of like 150.00 then the money they would pay for next month's rent would show as a shortage on the account ... make sense ?

I understand it's all about the numbers at the end of the day I'm just asking out of curiosity.

Quite a few curiosity seekers. 

Without going into detail, this generation was born in the right time and the right place to be able to accrue more monetary wealth than the generations before them.

Some very good tenant through the years had consistently paid me a few days ahead of time, and for that, I'm grateful.Technically, in leases around here, they have a grace period of 5 days, so late charges won't accrue till after the 5th.

Interest started to accrue 12% annual interest from the date I first filed the complaint.The next step is that I wait for 30 days (9/1/17) and can then ask the Clerk of the Court for an "order to show cause", whereby the defendant has to show a good reason that he cannot make payment.If he fails to show up or fails to show an adequate reason that he cannot pay, I can ramp up the collection efforts up to wage garnishment or asset seizure.He might be hoping that I'll just forget about this and go away.  

Then it's usually just a quick glance out of curiosity but it stops there.

Just out of curiosity, what is your cash flow for this property?

Hey @Grant Snyder .. when you mention the 4 br college rental and that it is netting $250 per month, is that taking into account the accrued equity wrapped in mortgage payments or is that primarily the net cash return?