Hmmm, I supposed you would pay on that interest since it is reported for that year, then if you never get your principal back you would reverse that in the following tax years as a loss.

You need to follow it.  

Decide what works for you and make a business plan to follow.

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The following elements must be proved before it is considered placed in service: 1) Readiness.2) Availability.3) Capability to perform its intended function.Advertising it before actually meeting these do not help you.

Not necessarily but more like an institutional lender that doesn't follow Fannie Mae/Freddie Mac rules. 

The RMLO will provide you an underwriting  package with the following items: STATEMENT OF COMPLIANCE QUALIFIED MORTGAGE REPORT CREDIT REPORT PROOF OF INCOME REQUIRED LOAN DISCLOSURES SUPPORTING UNDERWRITING DOCUMENTS CLOSING DISCLOSUREThis underwriting package will also help you sell your note for top dollar if you ever choose to shop it!

Hopefully, you already asked to see the following items:- lease agreements (look for: special maintenance clauses and what items the tenant is responsible for repairing if any, late fee dues and dates, security and extra deposits, what the owner pays vs what the tenant pays for utilities, landscaping, pest control, etc)- payment ledger- notices given (if any)- copies of annual inspection reports- Estoppel Certificates (show rent, amount of security deposit) if you do not have an agreementYou will need the current property management company to also provide you with current tenant contact information, keys to the unit, and any paperwork listed above.

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Hyper supply followed by increasing vacancies and downward pressure on rents.