If not, and you or one of your partners is audited, the initial reaction may be 'I see $150K profit on the HUD-1, but not on the person's return...'.

I have not heard of any IRS auditor attempting to pick apart depreciation on a rental, not saying one has not, but it seems it would be a very inefficient use of time in an audit for something under 750k or so.

Ive had clients flip remotely but they use my referrals so was somewhat audited workers.

Yes others want the PM and repair person and a parent PM company auditing and watching over the repair person and the Pm at the building complex.How many controls you put in place will depend on how busy your life is and how close you are to a property or not.Yield works like this.In 5 plus properties you can structure like this.Say you have 250,000 down.At 25% down you can buy a 1,000,000 propertyAt 15% down and then have a seller carry a 10% second 1,670,000At 10% down and then have a seller carry a 15% second 2,500,000Hope it helps.The cash flow will be determined by how you negotiate that second for rate and term with the seller.

This is pretty much why I wouldn't buy a mature company, I would buy the assets but the name and history of a mature company would need to be valuable, clean and auditable for me to consider it and suffer the brain damage.

I have 3 accounts: Rent, Operating Income, and DepositsI would suggest NEVER mixing any of your rental income/expense funds in with your own personal accounts... if you were to get audited it makes life just that much harder to show where the money is flowing. 

If I actually go for this, I'll be planning on an audit from day one and I'll have my ducks in a row :)

Get a home performance or "energy audit" done.

I have heard (complete hearsay here) that during audits the MREC looks for dates of Buyer's Agency being signed compared to dates of other activity i.e. showings, offers, etc.Hope this helps.

(CRMC).These are companies that have been audited by the National Association of Residential Property Managers and have demonstrated a high standard for both procedures and customer service.Again, I believe the best way to find a good property manager is to seek a property manager out and has invested in advanced training and education and has attained designations, usually they also have years of experience.Kevin