Each year by January 31, you or your bookkeeper has to total up how much you have paid to each person and issue each one a 1099, which is a simple statement of that total amount with your contact information as the payor. 

I technically don't need the seller financing and could qualify on my own, but it is a nice to have.

3- To record incomes and expenses correctly for tax issues, do we need to make an official contract for the renovation (between the LLC and one of the owners), or is simply issuing invoices and receiving payments in the LLC’s bank account enough?

  :)Financing for FHA and VA  will evolve to address their issues. 

Hi Matthew, Remember, navigating legal issues with tenants can be complex, so it's crucial to proceed cautiously and seek professional legal advice when necessary.

While the IRS allows this, it is a taxable issue.

If so, that will be an issue, unless there is a specific bank loan that keeps the note in their portfolio and is okay with the condo being non-warrantable.

They are incredibly understaffed and will view this as a civil issue. 

However, as first-time and inexperienced homebuyers, we overlooked critical issues during the initial inspection.

As others have mentioned, if you can commit to using the property solely as an investment and won't occupy it yourself at any point in time, DSCR will allow you get around the DTI/employment/income issues.