Taxes from personal to LLC

[Jacob Coniglione]

Hey guys and girls, My grandpa and I recently bought our first rental with Basically with cash ( he carried a small note something like 20k). We create an LLC to run the rental and control the finances and such, the LLC collects 1300/ month in rent and then pays my grandpa 1100 back to pay him back for the investment. (This also covers taxes and insurance on the property). I over arcing question is is the 1100/month payment to my grandpa taxable income to him?

Thank you very much!