I will start work with EY as an auditor in the fall and have recently begun studying for the CPA exam.  

The more astute auditors do understand this and if you have a mixed use log, it could spell trouble.  

Quote from @Robert Casper: So I just sat with a friend who spent his career (decades) as a commercial bank loan officer, mostly in real estate, with a retirement career as an independent bank auditor.

I went to the auditor site and the property is considered a true 2 bedroom and no permits were ever pulled best I can tell when they added the third "bedroom". 

Check county auditor sites or Realist’s public records for this data.• Adverse Features: Do any of the comps have issues not considered in the appraisal, such as proximity to a high-traffic road, sewer plant, or power lines?

I actually work as an auditor for a CPA firm down here in Norfolk, VA, but none of our tax staff specialize in real estate.I have a question for you regarding capital gains tax when owner financing. 

This ensures you’re protected in case of an audit or any legal questions.4.Consult a Real Estate Attorney•This step is critical!

I am understanding I can convert Operating Partner Units in an UPREIT to REIT shares (taxable) but the benefit is I can sell any percentage of the operating partner units, paying taxes on only that percent I sold.A friend that is a bank auditor, specializing in commercial real estate said:operating costs should total about 30%, leaving NOI 70%For us business people NOI in real estate is EBIDA (T left out as Taxes are an above the line expense)Any know, does the DST have to produce audited financial statementsSo now I feel I am better equipped to work with the RIRep and tackle the recommended PPMIf you really follow the track record of when these multi family unit being purchase and sell, average holding time is 3-4 years so you pay the premium in there and that's why how DST sponsor makes money.

Wasted 8 months with the County Auditor on the first application just arguing with her on the correct form.  

I spoke with a mortgage "quality auditor" recently who said he knocked on 600 doors last month.