I have met with the top three in person a few times.

The person who received the 1099-INT needs to file Form 1040 Schedule B and subtract the amount of interest that should "belong" to the other person as a "Nominee Distribution", and then issue their own 1099-INT to the other person for that amount of interest, so that the other person can appropriately list it on their own return.

As such, I would not classify this person as a landlord. 

If you have one person managing the property, you may consider paying that person a management fee, separate from the 60/40 split.

If you cannot meet with them, in person, a yellow flag, even Red in my opinion. 

Hopefully I get to meet you in person as well. 

@John Warren thanks John i see they have plenty of events in person as well as I would like to attend those.

@Ben M. As

Lot of lessons learned from that.1) read the person as best you can, they need to take notes, if they don't they will miss things forget things and it will create a situation for you both.2) know what your flip vision is, down to details like how you want trim cut, wall texture, etc3) NEVER Pay up front.

I also add in cleaning fees to my leases where a portion of the security deposit is non-refundable to help reduce the cost of turnover, which is generally captured in my R+M (as I do pay a professional cleaner to come after each turnover).