WIth that said "passive" is relative lol. 

I am still a relatively new investor and wish somebody told me this when I first started. 

Can anyone recommend good companies to root cause  and implement solution to fix this issue?

Things can and will go bad, but once there is enough monthly cash flow generated it will be extremely difficult for that one big issue to put us away or even 2-3 big issues all at once. 

Are you aware of some actual legal authority that validates the IRS opinion on this issue?

It’s ideal to have them view the property after the inspection, so they can consider any issues discovered during the inspection in their bid.

Its been a wild ride though doing all this through massive inflation and supply chain issue and Covid..  

But in my opinion, the biggest issue I see with folks jumping into their first "big" multifamily deal is the quality of the pro forma. 

., it definitely fights the arguments on re-fis with the appraiser but I'm noticing there's just a liquidity issue that is skewing things.I try to essentially start at the floor and work my way up on the ARV as opposed to seeing the highs and working it down.

Many are also tired of homeless issues, politics, and now more than ever natural disasters.