Hoping to hear some real world audit feedback for those who thought to do this.

@Elealeh Fulmaran that’s exactly what we’ve done, but we are auditing all of the for the last year.

REPS is one of the more heavily audited areas of the tax code and comes with a fair bit of nuance.

They also get audited from time to time.

Everyone talks about the excitement of the refinance — pulling cash out, locking in new terms, and getting ready to repeat the process.But here’s what I’ve seen a lot of investors forget:What happens after the refi matters just as much as before it.Once you refinance, your numbers change — your basis, your loan interest, and your depreciation schedule.Most people never revisit their books or update their records after closing, and it slowly creates a mess.You’d be surprised how often investors forget to:Recalculate depreciation based on new cost basisAdjust their loan amortization and interest deductionsTrack how much cash was actually pulled out vs. reinvestedThose little details might not seem important now, but they can cause major confusion (and extra taxes) down the line — especially when you go to sell or refinance again.The BRRRR method works beautifully if your backend systems stay clean.So when the refi funds hit, take a breather, update your records, and make sure your financials tell the full story.That’s how you stay scalable, organized, and audit-proof.Curious — how do you stay on top of your numbers after the refinance?

Tight box, steady audits, clear remedies.

That pushes large deductions into early years, lowers taxable income, boosts cash flow, and strengthens your hold strategy.Risks & What To WatchDIY studies or unqualified firms: If the cost segregation report isn’t solid, audit risk goes up.

There is no true way to know if you'll be audited but having the right documentation just in case is absolutely crucial to maintain your deductions.

I’ve found it super helpful to use a platform that lets me tag income and expenses by property plus log hours/material participation for audit and tax reasons.

Does anyone have personal experience with specific scrutiny of a logbook during an audit?