So I built a system that audits bids line-by-line against actual material costs and local labor rates.The problem I kept running into:Contractors charging $950 for water heaters that retail for $549"3 hours of labor" for jobs that take 45 minutesMystery fees like "shop supplies" and "consumables" adding 15-20% to every invoiceI tested my system on my own portfolio and found I was overpaying by an average of 22% across 15 invoices.

One tool I wish existed (and am actually building right now): contractor invoice auditing software.I manage a small portfolio and kept getting burned on maintenance costs - contractors charging $950 for $549 water heaters, padding labor hours, duplicate fees everywhere.

They do not stand up to an IRS audit.

I currently use a spread sheet to document my time with each property.Maybe an accountant, CPA or other can weigh in on the proper methodology of documentation that will survive an IRS Audit.

It keeps the operation tight, auditable, and consistent, every property, every tenant.3.

The advisor notes that this situation creates a risk of looking like a "manufactured tax shelter," which increases my audit risk.The core financial risk is that if I miss the minimum required MP hours by the December 31st deadline (or got audited and couldn't defend), the substantial 100% Bonus Depreciation loss that I generate from the Cost Segregation study will be disallowed as a deduction against 2025 active W-2 income and become a "suspended passive loss."

The advisor notes that this situation creates a risk of looking like a "manufactured tax shelter," which increases my audit risk.The core financial risk is that if I miss the minimum required MP hours  by the December 31st deadline (or got audited and couldn't defend), the substantial 100% Bonus Depreciation loss that I generate from the Cost Segregation study will be disallowed as a deduction against 2025 active W-2 income and become a "suspended passive loss."

Engaging in regular cost reviews and audits can highlight areas for improvement and potential savings.

We treat inspections like free quarterly audits of the property.

They are professionally managed with audited financials and you can trade in / out of them at will with minimal transaction costs.