@Joel HuntYup, so as you've surmised, your borrower processed the 1099 incorrectly. 

In process of looking for new umbrella myself.  

Are there any guidelines for situations like this where the tenants would need to stay somewhere else while the renovation is in process?

Thus the whole process costing you a few thousand more.  

A couple of months ago, I started the process on a HELOC and assembling a team in Sacramento to make this a reality. 

I will be able to cash out my original down payment + 30k more if I wanted to but as im going through the process I was wondering in the future if I pursue investing full time how do you still get approved for mortgages?

Additionally, I'm based in Michigan, and I would like to know if anyone in the community is familiar with companies or professionals in Michigan who can assist in the process of forming an LLC and managing the legal aspects of transitioning Airbnb properties.Any insights or experiences you can share would be immensely helpful as I navigate this potential transition.

Your question makes me want to check my state rules (Illinois), because I've thought many times that I might as well manage other people's STRs if I have all the processes set up to manage mine anyway.Finding a cleaning crew for 1 STR is difficult, but 5 is easy. 

Looking through listings recently I've noticed that a lot of them don't have dressers, and if they do you can tell it's mostly decorative because they don't look very useful (short/shallow drawers, minimal space etc). 

On the other hand, waiting until after the tenant leaves allows for a smoother rehab process and reduces vacancy risk, but it may impact the immediate refinance value and timeline.