@Stephanie P.Although not a BRRR deal, but her deal seems to have $6.6k of her money tied in, yet accruing $100 cash flow per month. .

Compounding is when interest is charged on already accrued, but unpaid as of yet, interest. 

Paid it off the day before interest started to accrue. 

I would continue to accrue the vacancy reserves in a safe place until you execute your exit strategy.

Bringing it current will mean less fees accruing.

Another point here is that the amount paid to cover tax is added to the loan account as an “advance” and accrues interest at the loan rate.

I agree, what's important is that you're paying down the mortgage and accruing the appreciation for yourself.

You want out of that scenario ASAP, because every day the weather or an incompetent contractor holds you up you're accruing a crazy amount of interest in addition to other holding costs (insurance, taxes, lawn mowing, etc).ARV is a key factor, although it's a loosely used term. 

I plan to call the County office to ask on Monday.My thoughts are that perhaps penalty and interested only accrues after a full month.

Also, begin accruing cash if you have not already....just realize that the financing won't come without deals and starting out you don't know what a deal looks like.