I also have thick skin so if any one else from Florida wants to be a dick, bring it on..once again, thanks again David.        

my father has been  a landlord for 20 years in detroit so i get to hear all about them since ive been around1 self employed people they  always fail to pay on time and leave dirt everywhere to be cleaned 2 those who turn into a life of crime and decide the unit is either a great place to distribute narcotics meth and other dangerous substances or worse they decide its a perfect place to produce drugs having the fbi lock down the unit and investigate my father this has happened 5 times now3 have had two units completely scrapped and i mean interiors gutted, copper pipes ripped heaters boilers even the shower and toilets stolen, these skin heads even tore threw the walls to steal all the electrical and hvac, needless to say they costed tens of thousands 4 one tenant decided it was a cool idea to pay for one month, then strip the entire location. once the tenant was evicted the house was burned to the ground. no charges were ever given .5 worst of all is when people die. once a drunk driver in a pickup truck drove right into the living room and killed not only himself but the tenants watching tv in the room, weve also had about 3 that i remember who we found laying dead from alcohol poisoning, the last one we payed to be sent and burried near his family  also we once had a witch doctor, this old lady disappeared after renting for a year. when we went inside the walls were covered in blood, there were rotting animals that had been cut open, candles and wax stuck all over the place. 

The question is: do landlords have to issue 1099s since technically income derived is passive in nature (i.e. not an active trade or business)?

Cant they use those funds in the form of a balloon mortgage or something of that nature for a flip?     

Off the topic, what happens if a title company actually misses a lien or something of this nature.  

However, I think it is important to standardize the definition of Turnkey:*Turnkey = A cash flowing asset, that has been acquired, renovated, tenant placed and vetted and all managed by (1) operator - all service are in house.You do not want to work with a piecemeal operator, they have no skin in the game, the loyalty is very short lived, plus you cannot place actual value on a property that has not been renovated yet, difficult and complex to finance.

Branch of a Foreign Bank or Insurance CompanyInterestDividendsCapital Gains (Income Code 9)RoyaltiesReal Property Income and Natural Resources Royalties (Income Code 13)Pensions, Annuities, Insurance Premiums, and/or Alimony (Income Code 14)Scholarships and Fellowship Grants (Income Code 15)Pay for Personal Services PerformedPay for Independent Personal Services (Income Code 16)Pay for Dependent Personal Services (Income Code 17)Pay for Teaching (Income Code 18)Pay During Studying and Training (Income Code 19)Artists and Athletes (Income Code 20)Real Estate Investment Trust (REIT) and Other Trusts Distributions Subject to IRC section 1445 (Income Codes 24 and 25)Unsevered Growing Crops and Timber Distributions by a Trust Subject to IRC section 1445 (Income Code 26)Publicly Traded Partnership Distributions Subject to IRC section 1446 (Income Code 27)Gambling Winnings (Income Code 28)Notional Principal Contract Income (Income Code 32)Substitute Payment - OtherCapital Gains DistributionsOther Income (Income Code 50)

My tenant basis allows for a lot of "trust" because they have huge skin in the game.

In my opinion properties well suited for vacation rentals have:A great location for touristsNear outdoor / recreation destinations (beach's, ski resorts, etc.)Near nature (on a river, lake, ocean, etc.)Or perhaps a great location for business / corporate housing (Downtown, near major companies, etc.)Decent demand year-round (If it sits vacant 40 weeks out of the year you would be better off with a long-term tenant).Great amenities (WiFi, TV, Furnishings, Linens, Coffee, small appliances, etc.)Accept credit card paymentsPool / Hot Tub is a nice bonusOutdoor space at the property (Deck, balcony, patio, BBQ area, etc.)Pet friendly (not required, but will get you more interest)If your property seems to meet many of the above characteristics it is probably well-suited for a vacation rental.Some major differences you will need to figure out (compared to long-term)Who will do routine housekeepingHow will you get the guests moved in and out (lock box, in person, etc.)What laws govern your locationsWhat tax implications (bed tax, reporting, etc.) will you have to figure outHow much extra will you need to charge to make all the above worth it.

Second, in this game (as most games in life), you must have thick skin!