Payments made with a credit card or payment card and certain other types of payments, including third-party network transactions, must be reported on Form 1099-K by the payment settlement entity under section 6050W and are not subject to reporting on Form 1099-MISC. 

A rebate of, say, 2% on a $400K property is $8,000 and enough to pay most/all of your settlement costs not part of your down payment.If you are in the mode of buying your first investment/house hack property, my advice to you is to hire a buyer's agent who is ready, willing and able to give you a buyer's rebate. 

You may be able to reach a settlement with the tenant or a jury trial may be needed.

So I’m looking to borrow $40k for 2 years, and am willing to use accident settlement as promissory note, or property purchase lean or both if necessary.

Then you could have those invoices  placed directly on the settlement statement and paid to the contractors. 

And if that happens then the whole thing blows up.If you want something recession proof then you need to be investing in an asset class that is uncorrelated with business cycles (litigtion finance, life settlements, royalties, etc) and even then usually you're only getting at best "extremely recession resistant".

ThanksYou want to look for the signs of settlement, cracking heaving etc.

Settlement company calls us 2 hours before settlement, "Hey, one of the sellers is dead and hasn't signed anything. 

Either way you'll receive preliminary figures on a settlement statement. 

We actually made MORE than that because we've made good cashflow from the apartment building during the time we held it.Here's the HUD Settlement statement:Here's the picture of the front of the building:True No Money Down Deal - No Capital RaisedThis is a TRUE "no money down" deal as we did not need to raise private capital or used OPM (Other People's Money).