The income is taxed as interest, which means ordinary rates but no self-employment (Social Security/Medicare) tax.

It can be either ordinary gain or capital gain ( short term if you sell before a year)depending on how you plan and document your intent.

There are always a lot of fees with lending, but nothing out of the ordinary! 

Assuming this was their personal residence and All cap gain is exempt under section 121, and was never rented (no depreciation recapture.)....1) return of basis-no tax2) cap gain-cap gain tax if not exempt3) interest-taxed as his ordinary income tax rate (no ss/med)

Without knowing the status of the project, I would like to add that you might be able to save some taxes if you sell your land to a closely held S-corp. if you dont do that, the appreciation in the land will be taxed as ordinary.

My term is 1st+last + security. 3 times rent of about 900$ is not something ordinary people (not rich but "working") should have?

Quick cash may transform into ordinary income taxed at your W-2 rates.

If i use an HML this year for a flip,  they fund me for purchase + rehab, etc ... does all that money get taxed as ordinary income?

Such entity in the ordinary course of its business must be engaged directly in real estate management or development activities.2) Expenses related to the real estate will be paid by the corporation.3) The real estate will not be used for personal use.4) There may be periods of time when the 50% test described in 1(a) above is not satisfied.

if you sold now you would break even at best.. but this is pretty much how rentals go.. your numbers are not out of the ordinary.. unless you take on HIGH risk low income rentals.. were they look great on paper but rarely perform as the paper indicates..