Example scenario:Seller is selling 30 units for $1,500,000Seller is open to seller financing with 20% down payment (interest only + balloon,18-24 months)Hard/private money lender provides 20% down payment + funds for repairs (interest only + balloon,18-24 months)After a 12-18 month seasoning period, the buyer refinances with a local bank (portfolio) and repays the lender/seller The last step is made possible because in this example scenario the property appreciated through value add/market fundamentals, the buyer accrued 12-18 months of cash flow, the NOI increased (raised rents, etc) and the expenses decreased (sub metered utilities, etc).Am I missing something? 

"(4) The principal amount of the delinquent taxes and the amount of accrued and accruing interest thereon and penalties, fees, and costs to the day of the proposed tax lien auction relating to each year of assessment.§40-10-184."

Ultimately I would say that your decision should take into account whether that $100 in cash flow at the fixed rate is likely to outweigh the interest you will pay over the course of the loan, divided by the number of years you have the loan, divided by 12 so you can get a direct comparison of that increased cash flow vs the interest accrued monthly over the term of the loan. 

Like Elizabeth said, in Ohio anything held in security over what constitutes one month's rent requires interest to be accrued and paid.

I found the following in "The CPA Journal":IRC section 163(d)(3)(A) defines investment interest as interest that is paid or accrued on indebtedness properly allocable  to property held for investment.

I've now accrued a list of 278 specific houses that meet my criteria with owners in pre-foreclosure, and I sent to 99 to try it out. 

Hell, even if I took a policy loan for $100K and spent it on strippers and beer, as the $100K loan accrues interest, the 100K of collateral securing the loan is earning interest.

I would be gone extensively (for a month) and still accrue large bills for the time I was away, and 2.)

The lease states that I am responsible for all bills and to place in my name, however, no gas was in the residence at time of lease and for over 6mths a gas bill has been accruing that I could have dealt with easier with a small bill.  

@Bill Leonard  HORRIBLE deal  @Charlie Fitzgerald   return FAR to low..Gap funder should get 50% of upside minimum... not a measly 12% apr on accrued basisyou guys really need to take a step back.you should go see a local HML... check out Norris group in LA they take investor funds.Not sure if Charlie takes on investors on a one to one basis or through a PPM.. but someone with his experience is the bow you need to shoot your arrows.Again this is a HORRIBLE Risk/Reward scenario and the person advocating it has just hit the lottery if he or she can suck investors into that scenario.