It seems it would be hard to bring a case against me since the buyer should know full well what he is getting involved in and he has been buying and selling properties/notes for 8 years.... but maybe that would not have any bearing?

B) Early term penalties if you are to re-fi the FHA loan quickly. 

Either get this property to cash flow by increasing rents (if the market will bear it) or refinancing down to a lower payment or otherwise cut your expenses where possible.  

I don't know the market there as well as here in the San Fernando Valley, but my cousin lives there and I travel by on my way to Big Bear all the time.

Eventually you'll learn enough to have your bearings and move forward.

Other work includes moving a water heater to an external location, placing some doors in a load-bearing wall, closing off another wall, and touching up the second bedroom.

Hope you didn't leverage up your RE and buy Bear Stearns when Cramer said they were sound a week before their collapse.

Wholesalers will bear more fruit in that space. 

The same thought process applies: rarely does everything go perfectly, and you will bear the costs of the mistakes/surprises once you close.

You need to get with a tax advisor as to your tax election for your LLC, that will have a bearing on how you will be reporting taxes.I find getting an LLC set up from LegalZoom for a note business to be rather amusing, pinching pennies and buying notes. :) Take care, you may get to be our test case for the SAFE Act, DF, and brokerage requirements being in the note business in an LLC.