We put a couch and a tv in there because we figured it would be a great place for kids to segregate themselves from the adults, or just any group who wants to watch something different than the people in the living room.

If you feel you're likely to grow your business, the Series LLC may be worthy of your time and investigation.

Here's some information about why Texas is great for forming LLCs and Series LLCs.I'll take your questions in order:1.

- Watching a TV show or a movie- Reading fiction or non fiction?

It'll more or less be treated as self employment with the lesser of the average of the most recent two tax years over 24 months or YTD earnings over N completed months in the year, with one-off exceptions to the latter for industries known to be seasonal.... those reality TV Alaska fishermen making $100k in 2 months of work can get mortgages, and real estate agents can get mortgages in February even though their YTD is often $0. :)Start getting a detailed list of employer start/end dates together along with all W2s/1099s.

Real estate is a get rich extremely slowly scheme, despite what late night TV commercials suggest. 

Real life isn't TV.

@Matthew Sloan for flipping I suggest a basic series LLC.

Wholesaling for the most part, the S you hear about on tv, internet gurus is baloney....  

However the seller has the option of cancelling and refunding the deposit (Which looks like what happened here).DISCLAIMER: I am not a lawyer, don't play one on TV and have zero firsthand knowledge of the contracts used.