Accrued interest (DUTCH) gets rolled into the loan and a 15% PREPAYMENT PENALTY IF HE EXITS WITHIN THE FIRST TWO YEARS.

And understand how your return is structured: is it paid currently, accrued until maturity, or capitalized into principal?

Some states require landlords to accrue and return interest, while others don’t.

Once the account accrues to a certain amount that works for your situation, keep it and extras can get moved towards your next investment. 

So the owner/you will receive a final bill through the day before move-in and all amounts accrued after that go directly to the tenants bill.  

In this case, there's no debt, meaning the investment has to throw off more than a 6.5% return for you to make a dime, and a multifamily deal trading at today's prevailing cap rate of 5% or so isn't likely to exceed the pref for quite some time, and with accrued pref stacking up you might not make a dollar for 3-5 years. 

So if you do just #4, make sure your cash is in some rolling balance that accrues the 4-5% HYSA or tbill or fixed income to mitigate the loss spread of your debt servicing rate + negative cash flow versus your apy. 

Some lenders will allow the monthly interest to accrue, but most will expect the interest to be paid monthly. 

Would love to hear how others handled this — or if it’s worth taking to small claims court.Here is the details of the penalty term:If the property is leased to a tenant on the date this agreement ends, and the owner terminates the agreement (for any reason), then the owner agrees to pay the broker the greater of:The management fees that would accrue over the remainder of the tenant’s lease,ORA flat fee of $500.

One unit in particular accrued nearly $10K of repairs, and I wasn't able to vet or challenge any of that, I didn't think I would have to.