Adjusted basis is the original purchase price, minus the cost of any improvements to the property, plus the accrued depreciation on the property.

It was 1800 but now interest is accruing in it monthly.

My curiosity was more if I was "missing something" in my calculations (admittedly, probably with regard to whether I could increase my offer on the house above).

In this case, it's like $13 | he claims the lease stated the interest would not be accrued.

These charges won't be paid until the entire cheap loan is paid and these charges will accrue interest at the typically high 15-25% credit card interest rates.Credit Rating:  credit rating bureaus hit you hard if you have even a single maxed out credit card. 

Just out of curiosity, who did you use and would you recommend them?  

They let the fines, interest, and penalties accrue and pay off everything at the end of the year. 

I've done one other project with a Code Compliance lien that was bank owned and accruing for 2 years. 

All of it has been accrued through an employee purchase program and purchased at discounts of 10-15% or through RSU's.

.$2.6m less $520k DP plus $39k closing costs = $2.119m$385,095 (GSI) less $19,255 vacancy allowance = $365,840 Gross Income$140,778 Expenses (not incl. vacancy allowance) (from seller's FY 2015 P&L)NOI = Gross income less expenses = $225,062CAP = NOI / price = $225,062/2,600,000 = 8.66%Cash Flow = NOI less mortgage = $77,560COC = Cash Flow / Cash Investment = $77,560/$559,000 = 13.9%Total ROI = Cash Flow + Appreciation (3%) + Accrued Equity / Cash InvestmetTotal ROI = ($77,560+$78,000+$74,495) / $559,000 = 41%Vacancy Allowance = $1605/mo (already accounted for above)Maintenance Holdback = $1605/mo (already accounted for above)If there's something funky about these methods, let me know.