@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.

I have always had curiosity and interest towards real estate but I actually started investing last year.

Also, just out of curiosity what type of cashflow are you seeing per month on that multifamily?

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. 

So out of curiosity I had a evening chat with one of the lenders.

Just out of curiosity are you trying to self manage or are you going to a property manager?

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..

AS for your property just out of curiosity did any of the following apply or get addressed?

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

Where are the 3 properties you're analyzing out of curiosity?