Some operating agreements will say that any cash flow to the investor first reduces the investor's principal, thence it credits toward accrued preferred return, thence you enter split territory.Other operating agreements say that OPERATING cash flow is first credited toward current preferred return, thence to undistributed accrued preferred return, thence you either reduce principal or enter split territory (one or the other)...and any CAPITAL EVENT cash flow (refinance or reversion proceeds) first reduces principal, then preferred return and so on.While subtle, there is a difference. 

Also the only part of the water bill that follows is what was accrued from the date of foreclosure until the home was sold.

There is a longer period for interest and fees to accrue at a younger age over the expected period. 

Pay it when your mortgage is due :) If you ever pay extra pay as close to that paydate as possible as interest accrues based on balance remaining.

Any money Curt has spent on the property to make it rent ready is accrued until Curt exercises his option at which time the make ready costs are added to his basis.  

In such a case, any amount remaining once all debts and costs have been satisfied shall be returned to the mortgagor.Conversely, when the mortgagor has little to no equity in the property - particularly where the equity is less than the sum of all amounts owed, the court may shorten the redemption period and, at least in our experience on this end of the Country, enable the lender to take possession and sell the property at a price between what is owed and FMV.2a) When you reach the stage where the lender has filed a Statement of Claim, the note extended to the mortgagor has been accelerated and is due in full (principal, all accrued interest and any costs or penalties).   2b) During the redemption period the mortgagor has the right to redeem (buy back) the property.  

However, looking a the statement, I see a 'Fee to Master Dr' every month for about $1 and then similar interest so really nothing accrued.

I want to live in my investment property for a few years so I can gather experience and also pay off my student loan debt that I have accrued.

Remember, any out-of-pocket expense you accrue is tax deductible so long as you can show that the expense is related to your business (see LLC formation).  

I told him to move out by the end of July so he won't accrue additional rent.