The instrument should be specific that he is personally liable until such time as you refinance, or he does something valuable for the company that would offset your monetary contribution, etc.

Subject to Paragraph 1 hereto, the covenants, conditions and restrictions may be amended during the first twenty (20) year period by and instrument signed by not less then 90 percent (90%) of the lot owners, during any succeeding ten (10) year period by and instrument signed by no less that 75 percent (75%) of the lot owners.

So you can pay now, or pay later and make some money for a while.Or follow the path of more than a few people and pay never.  1031 into a passive cash flow producing instrument at some time and never sell at the end. 

I'd also factor in the reality that the Fed will be raising rates several times this year, which will directly impact the rate you pay on any floating rate debt instrument tied to prime (your HELOC specifically).

Your day to day routine won't change that much: you will still have your Starbucks, Gold's Gym and Panera Bread that your boss loves so much.The things I learned being hands on in my "investment city" has been instrumental to my investing and decision making. 

You aren' t getting title without either the current owner's signature OR the full foreclosure process outlined in your security instrument.

Am I supposed to issue each beneficiary a 1099-MISC, 1099-INT, or some other instrument, or nothing at all? 

That's assuming they were instrumental in helping build your foundation to pull the trigger!

You do record the security instrument with the county but usually the note is not.

@Mark Forest i use venmo, cash app, zelle, apple pay etc. they are all seamless and take very little brain waves to use. venmo is by far my favorite. i also give out my account number to allow tenants to stop at my bank and deposit directly too.steps to use venmo:1. download app (free)2. set up your profile on app3. link bank accounts (i have about 7 accounts linked for different properties/personal)4. tell the tenant to find you on the app and make a payment (free)5. the payment doesn’t auto deposit but you will receive a notification on your phone. go onto the app after the you get the notification and go to “transfer balance” and select the desired account you wish to transfer to (free)6. payment will be in your account the next daythis app has been instrumental in my business. i love it.