@Ivan SmithSell it traditionallyI invest in notes and always tell people do not sell seller financeWhile you think it’s great cash flow / that interest you are making is ordinary incomeHow are you handling all the payments ?

Profit from flipping is considered ordinary income. 

But, $9090.91 of that was return of principle and $909.09 was interest you received as ordinary income.Seller financing is ALWAYS the way to go because you can accomplish just about anything they need or want if they don't need or want the cash right now.You can pay a premium and have purchased at a discount. ;-)Not convinced?

@Eugene Thurston At this point, you buy it directly from the owner, just as any other ordinary sale.

The flip income, emphasis on income, is taxed as active/ordinary income anyway. 

Learn to set boundaries.I recommend two forms of communication: one for emergencies that require an immediate response (typically your cell phone) and one for ordinary communication, questions about the lease, etc.

A property flipping business is an active income business which means the income is ordinary income NOT investment income.

What about ordinary income?

Everything seemed to be ok with it, I even passed by the property physically to see if I can see anything out of the ordinary.

If you don't, it will be considered a distribution and subject to taxes and penalties.Am I correct in the following points:1) If you take out a loan from your 401(k), and then leave your employer, you are required to pay that loan balance back in 60 days otherwise it counts as a distribution (subject to ordinary taxes) + you are subject to a 10% penalty for early withdrawal?