To minimize audit risk, it’s advisable to choose “Other interest” instead of “Mortgage interest” when reporting.Part 2: Forms 1099-INT from Investors to Private LendersForms 1099-INT Explained: Similar to the interest earned on savings accounts, Form 1099-INT outlines the interest that must be included in taxable income.

Ultimately, my dream is to achieve financial independence and free myself from a 9-5, build generational wealth and allow myself more time with my little ones.

Although, you arent going to become independantly wealthy, quit your job and have your own business following his advice.

In my recent IRS audit, the agent appreciated that point. 

I found independent inspectors.

@Sylvester Hardison Contact a couple independent insurance companies in the town the property is located in and get quotes.

Real Estate Investors AssociationMany of them are independent and some charge a fee and some do not.

Does every one of those 2,500 properties exist as it's own independent LLC? 

You don't necessarily need a CPA licensed in those states to provide you with tax planning, tax advice or to help prepare your return.licensure for CPA's by states are normally important when you want to provide assurance / auditing related assurance

More can be found out on the IRS website The Cost Segregation Audit Techniques Guide3.