I understand your aversion to paying a tax professional, but you would be better off.Your attempt to DIY this thing may result in losing some of the benefits and even triggering an IRS audit.

Which study do you think has more audit defensibility?

Neal tried to distance himself from the deal and saying he invested his money as LP (which I will not trust unless I see audited by third party) still no progress and starts keep getting more horrible each quarter as they discover more assumptions were incorrect.

For those looking to track qualifying hours or material participation, I also have a simple template for logging activity that’s audit-friendly—happy to share if anyone needs a copy.

Or what happened if the other party is audited and they report it differently than you did?

I have never seen any financial statements or documents or 3rd party audits etc.  

Some people will simply transfer the property anyway and then simply make sure they do not make late payments or otherwise default on the loan because most lenders won't spend the time and resources to audit the account and discover the change as long as borrowers are making on-time payments every month. 

You’re ahead of the game at 20, so channel that boredom into skill stacking and deal flow: tighten your buy box, underwrite 5 to 10 deals a day, and post your criteria to your network so leads come to you; master one financing path (DSCR, HELOC, or private money) and prep docs now; optimize your current duplex with a simple revenue bump test and expense audit; build your “core four” team in your next target market and do virtual tours weekly; line up a small BRRR-style playbook so when your savings hit your target you can move fast—your job now is reps, relationships, and readiness so next summer you’re executing, not learning.

They have no audited financial statements or independent proof of profitability and after much searching none of Disrupt Equity's Meta ads, relied upon by investors, disclose their dismal track record of paused distributions (check the value on this Austin asset with its current 5.58% subcategory cap rate and $43M value).

Not following the rules can trigger audits or penalties.Business expenses: Just because something seems “business-related” doesn’t mean it’s fully deductible.