I just want to make sure that I am reporting the income on my taxes properly.

10% of total renovation budget is a normal contingency balance. 

- bought house in May 2016 for $212,900- Mortgage balance is around $182,000 at 3.5%- I’ve put around $15,000 into it- 2017 tax assessment: $225,000; 2018 $250,000- would list for $269,000.

Proper insurance is what most need  and most of us are most.. that's why insurance exists. 

She had one "unpaid balance recorded as a loss" in 2014.

I personally do not like to be tied into very high required balances.  

With any month-to-month lease, the landlord can raise the rent, change or terminate the agreement at the end of each month, with proper written notice to the tenant.

Last week (3 months later) he told me that I owed him $1200 which was the $400 balances from the $1000 each month.

A quick google search for NC brought me this result: https://www.lawhelpnc.org/resource/proper-notice-o...I would start with the town where you have your property and ask about eviction rules or look for them on their website.Best! 

So if we are using this business credit card to buy some of the materials for the reno, then we rent it out, then we use the cash flow to start paying the balance down, how will that effect the cash on cash return?