This will clarify and reinforce what you are reading.

If this was your first year getting a 1099, then there might be a small chance that you could get away with just this year's 1099.....HOWEVER, since you have been 1099'd for 2 years now, then the mortgage lender may request tax returns before extending a mortgage. 

I always knew this was a common problem in the real estate space and I was always curious as to what was the underlying issue.

You might have done this already but maybe calling some agents there or finding property management companies in that area? 

This is a different situation when residential properties are sold.

Purchase price: $38,000 Bought this property with a private monery lender and sell it to a investor with 20K down.

@Matthew Mclean May not apply to your loan but for others that read this they may need to make sure there is no pre-payment penalty.

I’m Lori, a real estate agent, and I’m happy to join this community.

I know this doesn’t necessarily have to do with investing, but I believe it is important regarding the next steps towards my investing journey. 

The best thing to do would be to consult an attorney, but likely, that is not an option for everyone starting out.I'm not an attorney, and this is not legal advice, but some of the information that we include in our contracts is:- A clear scope of work - Payment schedule / Milestones- Change order approval process- Allowances for finished materials- Reasons to terminate the contract- Expectations for start date (X amount of time after final plans /permits are received or X amount of time after the contract is executed)- General schedule and timeline (This is where you could specify an end date - however it may be better use incentives rather than liquidated damage if your general contractor is late - we've done both, but found General Contractors respond better to getting something if they get done early instead of being punished for being late.