In the past 12 months I've had guests destroy or damage: 1 tower fan, 3 sunroom patio chairs, 1 Pull out sleeper sofa, 1 queen sized bed & box spring.

The LLC profits will be taxed either as passive income (rentals) or ordinary income if you have a full time business or meet some other requirements.

Here is the official IRS position: Interest received on notes receivable that you have accepted in the ordinary course of business is business income.

You'll eventually reach a point where the income from seller financing( all ordinary income) will cause serious tax consequences.

Part of being a bona fide business expense though is being ordinary and necessary.

We don't like taking care of a yard, so we'd put in a patio and border it with plants, other foliage.

At that time it would offset your income at ordinary rates and possibly lower the capital gains paid at that time.

Well, you've got to show ordinary income.  

Income from any property that you purchase to wholesale or rehab and sale is ordinary income and subject to self-employment tax.

They look behind the furniture and the bed (checking for outlets without covers).I heard from another landlord a couple years back that the City of Garland made him spend thousands tearing up and replacing a concrete patio because there was a crack and it was a trip hazard.