Certainly a unique set of circumstances, however good on you for applying yourself and closing the deal.

I am not sure of the circumstances surrounding your judgement but it can be hard to collect anything. 

Even if a tenant has an eviction or collection, I'm unable to verify the circumstances or validity of those actions.

I'm reading Garret Sutton's Loopholes book and it doesn't offer suggestions for this circumstance. 

I read that Subject-to completion appraisals have to be written because something unforeseen prevented the completion of the project.

Does anyone have experience on this type of circumstance?

I'm an optimistic person, but plans change with circumstances...it kind of sounds like your emotionally attached to this property.

The renovation costs may include a contingency reserve and renovation-related costs.Contingency Reserves: Contingency reserves 10 % required for any unforeseen cost overruns that may occur during construction.Unused contingency reserves that were financed into the loan will be applied to the principal balance of the loan.

If no I wouldn't worry about issuing your son a 1099.Confirm with your tax advisor as he/she knows your facts and circumstances, and can dial in advice.

I had a friend some time back who got into a car accident, and due to the circumstances of the accident he lost over $3 million of his investments.