But you do need to print up a simple OK real estate agreement and fill in the blanks.If you sell the house, every dollar that you sell it for that is higher than what you paid for it will be taxed at your ordinary income rate, since you are holding it for less than a year. 

Or was the business sale ordinary income and not real estate?  

Would love to get a 203k loan and fix up that separate building out back and add on extra square footage to the main house already under the roof (now a patio) could make master bed for example.

You've got 50 - 60K of gain which could create an ordinary tax plus self employment plus ACA surcharge bill of probably around 20 - 25K.  

Yeah I had done some research on appropriate late fees and penalties for posting a notice and they didn't seem to far out of the ordinary.

Would it be taxed as "ordinary income" at that point?  

Upgrades that help keep long-term tenants, in my experience: decent counters & cabinets, a fenced-in yard (privacy with landscaping a bonus), off-street parking, flat outdoor entertainment space (deck, patio, etc), low utility bills, central heat & air, dishwasher, no carpeting (hardwood or laminate floors), main floor washer/dryer hookup, good storage (clean dry basement/attic, storage shed, etc) .

Now during the crisis the lenders put a moratorium on issuing the 1099C to any owner occ. and many others as they were just over whelmed.. but these as you note that the other person got one.. the banks are now issuing them.what this does is tells the IRS you got debt relief and said amount of debt relief then become ordinary income and you must pay tax on it..

The seller leases the property to the buyer for a contracted term, like an ordinary rental -- except that the seller also agrees, in return for an upfront fee, to sell the property to the buyer within some specified time in the future, at agreed-upon terms (possibly including price).

The idea of seller financing would be the seller avoiding a huge capital gains hit whereby she would only pay ordinary income on the installments since there is no principle involved until I make the balloon payment, or if she decides to sell the note.