My friend is treating me like he owns the entire business since he had the idea for so long, which I get.

He was a friend and treated me like gold.

If you owned the house for more than 1 year it will be taxed as long term capital gains while less than one year will be taxed as short term capital gains (treated as income). 

It is the "California Association of Realtors (CAR) Residential Lease or Month-To-Month Rental Agreement".Since month-to-month renters have the exact same tenant rights as yearly renters in Los Angeles, it is important we treat the leases seriously.

Be polite, respectful and treat her like you want to be treated. 

Next, I would want to know how banks will treat this.

So interested to hear how the 1st year has treated you in Chattanooga.

Are you treating this like a business or hobby? 

Since my reserves were already at a comfortable level, I found making extra mortgage payments every few months didn’t affect the cash position, so I treated the whole process as if I had incurred a large repair bill that month which reduced the cash flow.With rentals, every now and again a month would come along where I had to cover several repairs and it might take one or two months before I saw positive cash flow again.

But much hinges on how your accountant has treated it over the years.