If you made interest on the loan, that is income you should claim, and that it taxable and you owe the lienholder a 1098 at the end of the tax year for the interest that he/she paid you.

Rents are pretty decent, and it'll cash flow a few hundred per month after all hold outs (and a 7% property manager fee paid to me from LLC).

I am not so sure now that they paid if we want them to leave.

Thanks everyone for your feedbacks@Shmuel Waldman these are questions i am looking for. which will help me organize what my plans and decision should be@J Scott the contractor does not get paid till the property is flipped.

@Lei Zhao agents in this industry agents get paid for results not effor.

That's exactly how we got a 3-plex for an $80k discount on the price the previous buyer had paid.

How often was their rent paid late? 

We paid off the mortgage, misc expenses and I got my axtual repair expenses plus 40% back, then we split the net profit 50/50%.

heynot sure if this is the correct sub-forum but i'l give it a go. planning on buying a property, long term rental, all cash. now, say i have around 500$ coming in to my account every month (this is in theory, after all expenses are paid and taking into account vacancy, small repairs, capex etc'). current plan is buy a property every once a while (at least every 2 years, could be less once mortgages will be an option for me, non us citizen starting to invest here. talking about properties in the range of 60-80k). letting the money sit in the account until i buy my next property does not seem optimal to me, but on the other hand investing it in the stock market or something like that does not sound good either because i will need that money in a short period. perhaps i'm overthinking it but i'm trying to see i'm leaving any money on the floor so to speak :)what do people around here do? 

There is no pre-approval or verification by the IRS is required.