I performed an HOA audit, if you will, by counting all the absentee owner houses.

As @Brian Burke mentioned once the funds are in there is pressure to deploy as the clock is ticking.Sophisticated investors are aware of this and are sensitive to operators looking for fees and doing marginal deals just to keep the capital moving.Third party Fund administration and audits are also very important to the more astute investors and will help in raising your first fund.

The developer I worked for had several properties fall into default based on the annual compliance reviews which could include maintaining DCR, rental occupancy levels, reserves, including auditing your own balance sheets, as these are just a few areas they hit on (obviously depending on loan) assuming apts.

Each state has a Division of Real Estate who oversees broker operations & requires broker's to adhere to incredibly strict accounting procedures, audits and care of all of this money that flows in & out of their hands that is that of the client's (you) or the tenant's.

The property I just invested in would be a construction mining operation and is surrounded by other mines but these conservation easement sponsorship groups all intend to follow the easement route.These are IRS listed transactions with lots of audit scrutiny; so, not everyone is interested in them and the math works best in certain federal tax brackets.

FHA will send agents to do door knock audits to ensure you are living in the home. 

They first will do a thorough audit of your last 2 years of taxes for ALL entities and then walk you through where things are good and where you may be at risk and then create a tax strategy moving forward.

In my personal opinion, 24 months is a very conservative hold time because it straddles three tax years and if audited, you can clearly show your intent to hold.

Meeting the 100-hour material participation rule qualifies your STR income as active as long as no one else participates more than you, This will allow losses to offset W-2 or other active income.While there’s no official IRS form to track hours, maintaining a detailed log is essential in case of an audit.

My concern is tracking the time in case we get audited.