I really enjoyed working on and around houses and, after accruing a hefty college loan debt from University of Wisconsin trying to follow the "get a degree, go work for a corporation, climb the ladder", found myself back in the construction field.

For the payoff, I packaged the deal with all expenses including the interest that would accrue.

Purchase price 147KListed for 299K, sold for 285 (went under contract for 290 but dropped it another 5K at buyer request after the appraisal just to get out of the deal)Home Depot credit card: 10K (appliances, fixtures and other things we picked out and purchased ourselves rather than having GC use typical builder grade stuff, also husband did some of the work himself so bought his own materials)Brought 40K of our own cash to the closing table, loan total when paid back was 185 (original loan 175 plus 10K in accrued interest, 12 month balloon loan so we did not have to make payments during the rehab, which helped a lot with cash flow, also loan had rehab costs folded in so for the most part we paid our guys out of the loan and not our own pockets)So (numbers are round): 285 sale price - 185 (loan payback) - 40 (cash we brought to closing) - 10 (Home Depot card) - 10 (closing costs) = 40K profitWork done: insulation and vinyl siding (this ate 18K of rehab budget but was unavoidable as cedar shakes were disintegrating), converted to natural gas heat (ducts already in place, changed out electric hot air blower to gas one and gas company ran the gas from the street for free), replaced AC compressor, new water heater, two new bathrooms, replacement windows, new appliances but left the wood cabinets b/c they were in perfect condition and I could not justify painting/replacing them, new kitchen backsplash, removed wall between kitchen and dining room, wood laminate flooring throughout except for new carpet in downstairs den, painted the deck/railings, new garage doors, one new slider, all solid wood interior panel doors, of course fresh paint and new light fixtures throughout.dining roomThere was moisture damage downstairs from bank not winterizing and pipes bursting...thanks, bank.Hauled out enormous old woodstove and broke up ugly old hearth and left good flue for someone to add new pellet or woodstove to if they want to, we figured not everyone wants a woodstove and this way the buyer can decide to add one back if desiredBathroom off downstairs den, chose a walk in shower for variety, hosing off dog or muddy children, disabled access, etc. 

I did my due diligence and checked with the city & code enforcement states the bill is still accruing at $100 per day per for the past 3 years.  

The cash expenses are possibly true if the owner is milking the property for cash flow and skimping on capex/repairs (though the owner should accrue a reserve for those costs).  

The way i see it, i will make about 4K on the house annually, which is an 8% return on my cash investment while accruing capital appreciation. 

If the homeowner (funds from closing) pays the tax lien, accrued interest on the lien and 2014 taxes.  

and a higher rate98-9%) if they let it accrue until sale or maturity date, then gets paid at sale.

Won't be any discount from Fannie, just accruing taxes, insurance, interest, etc.

If so, what is the amount of accrued penalties and interest over and above the 135K?